GREED IS GOOD! : Currencies [Archive]

DAILO

Jun 24, 2000, 12:35 AM

RP peso recovers on firmer baht, easing worries

The Philippine peso (PHP) erased early losses against the U.S. dollar Friday, cheered by the recovery in other regional currencies led by the Thai baht in late trade.

Concerns over a central bank circular tightening rule on dollar transactions of banks' foreign exchange subsidiaries also subsided. At 0800 GMT, the U.S. dollar/peso ended at PHP42.845 against Thursday's PHP42.870 close.

The pair rose to a day-peak of PHP42.960 in the early session but simmered down to an intraday low of PHP42.825 in afternoon trade as other regional currencies also gained lost ground against the greenback.

Total volume at the Philippine Dealing System, however, thinned to U.S. $76 million from $128 million at the previous session.

At 0841 GMT, the dollar/baht was quoted at 39.02 against 39.20 in early Asian trade.

Dealers said easing jitters over the new central bank circular on banks' foreign exchange subsidiaries also helped lift the peso from early lows.

The central bank released Wednesday a circular letter requiring banks' foreign exchange subsidiaries to record all their dollar transactions and state the purpose of all purchases or sales of foreign exchange worth at least $250,000.

Traders also said the market saw a strong resistance at PHP43.000 amid weak corporate demand for the dollar at the PHP42.900 levels.

A third trader said the local pair may stoop back to PHP42.700 in the near term, barring any wild gyrations in regional currencies and negative developments at the domestic front.

Dealers said the market will watch closely the U.S. Federal Reserve meeting June 27-28 and how the central bank will react to any decision on U.S. rates. Central bank Governor Rafael Buenaventura earlier said the monetary authority will likely keep its key overnight rates steady if the Fed will raise its rates by only 25 basis points.

The central bank's overnight borrowing rate stood at 10.00% and the overnight lending rate pegged at 12.25% since May 19.

DAILO

Jun 24, 2000, 11:24 AM

Originally posted by wAgKaNgMaKuLiT:

wow! big time na DAILO
may iba ibang sectors na yun "GREED IS GOOD" Thread. :)

.

:D :D :D

WELCOME BACK KULIT! :D :D :D

KuLiT :D we missed you... I also had a thread looking for you...

wAgKaNgMaKuLiT

Jun 24, 2000, 05:24 PM

Originally posted by DAILO:
WELCOME BACK KULIT! :D :D :D

KuLiT :D we missed you... I also had a thread looking for you...

-->; thankx! :)
talaga? where is it?

.

:D :D :D

DAILO

Jun 26, 2000, 08:41 AM

Its somewhere in the forum... no one replied therefore it disappeared fast... :( Im glad youre back :D :D :D

GREED IS GOOD!

DAILO

Jun 26, 2000, 08:49 AM

Singapore dollar extends early gains

The Singapore dollar extended gains made in early trades Friday on liquidation of long U.S. dollar positions after U.S. dollar sales by some local banks triggered fears of intervention by the Monetary Authority of Singapore (MAS).

At 0920 GMT, the U.S./Singapore dollar was bid at 1.7320 compared with 1.7340 overnight in New York and 1.7346 late Thursday.

In early trades, the U.S./Singapore dollar jumped to a high of 1.7365 backed by talk of big U.S. dollar demand from a local bank -- said to be for a large local corporate -- probably to fund its overseas stake acquisition.

This early rise was, however, short-lived as local banks sold U.S. dollars prompting other banks to unwind their long U.S. dollar positions.

Traders said the gains made by the Singapore dollar were also prompted by ideas that the local banks were probably selling U.S. dollars on the directions of the de facto central bank MAS, which is seen usually intervening through local banks to smoothen demand-supply imbalances in the market.

Earlier this week, the MAS was said to have checked levels at around 1.7350. The unwinding of positions continued in mid-day trades as banks preferred to hold square positions ahead of the weekend amid continuing concerns over developments in Indonesia which were keeping the rupiah volatile.

Traders expect the Singapore dollar to continue its upward journey and even break through the 1.7300 mark, but resistance above the key level is seen ensuring that such rises are limited.

Regional currencies, which had turned weaker in early trades, also managed to trim their losses, adding to positive sentiment for the Singapore unit.

The U.S. dollar/Indonesian rupiah, for instance, trimmed early losses on pre-weekend squaring of long greenback positions. It was bid at 8,665 compared with 8,690 (0233 GMT) and 8,675 late Thursday.

Traders expect the Singapore dollar to move in a 1.7290-1.7360 range Friday with downside finding support amid fears of central bank intervention.

Singapore corporates have been in the news for making overseas acquisitions in line with the expansion and regionalization strategies.

DAILO

Jun 26, 2000, 08:53 AM

CURRENCY SUMMARY

Php 42.84 1 USD 31:27 PM GMT

Yen 104.68 1 USD 0:54 AM GMT

Euro 0.94 1 USD 8:54 AM GMT

DAILO

Jun 26, 2000, 08:55 AM

GOOD MORNING MANILA! I hope everyone had a wonderful weekend like I did :D :D :D

GOOD LUCK in your Trades today!

GREED IS GOOD!

DAILO

Jun 26, 2000, 09:26 AM

Daiwa in strategic partnership with asiabondportal.com

asiabondportal.com, an online information and debt instruments dealing facility, claims to have captured a 20 percent market share for Japanese and Asian bonds excluding JGBs, following its alliance with Daiwa SBCM, and hopes that its final grouping of bond dealers will enable it to increase its hold to 30 to 40 percent. Daiwa SBCM will join the group, which includes Deutsche Bank, JP Morgan, Government of Singapore Investment Corporation (GSIC) and Income Partners, the founding shareholder. Daiwa SBCM’s board has given its go-ahead to the partnership whereby Daiwa SBCM will purchase equity in asiabondportal.com. Daiwa will focus on enhancing the yen debt instrument database, help integrate yen credit trading on the site and expand the business in the Japanese domestic market.

asiabondportal.com, which was formed last year, is a comprehensive Asian bond instrument website that services institutional investors. The website makes it easier for investors to get general news of the financial markets, information on bond prices and enables them to trade Asian debt instruments with the dealers in the system. Dealers are able to service a larger clientele without having to expand their sales force.

Daiwa SBCM, JP Morgan and Deutsche Bank will be active dealers and content providers, and provide online liquidity for Japanese and Asian debt instruments. A key feature of the site will be its multi-dealer functionality, which will allow fixed income investors to transact with leading market makers that include its strategic partners.

The trading functionality will initially cover US dollar-denominated bonds, including convertibles.

DAILO

Jun 26, 2000, 10:01 AM

CURRENCY SUMMARY

Php 42.87 1 USD 10:00 AM GMT

Yen 104.53 1 USD 2:02 AM GMT

Euro 0.94 1 USD 10:02 AM GMT

DAILO

Jun 26, 2000, 10:02 AM

EIB issues fixed rate note in Hong Kong dollars

European Investment Bank (EIB) tapped the Hong Kong dollar market with the issue of HK$500 million five-year, fixed rate notes. With a quarterly coupon at 7.75 percent interest per year and issued at 101.625 percent with redemption at par (100 percent), the notes mature on June 27, 2005.

HSBC was the lead manager and bookrunner.

EIB, which provides loan finance for EU member countries, finances itself through capital contributed by member countries and loans at fine rates raised on the international capital markets.

DAILO

Jun 26, 2000, 10:03 AM

Thailand continues recovery

Despite earlier indications, Moody’s Investor’s Service, signalling further recovery from economic recession has raised Thailand’s sovereign credit rating to investment grade.

Thailand languished under junk bond status for the past two-and-a-half years following the devaluation of the baht in July 1997; in part triggering the Asian financial crisis. Thailand’s sovereign rating was slashed to Ba1 from A2 before resurfacing at Baa3 on June 22. The outlook for the new rating was stable.

Although still four notches below the July 1997 level, Thailand is now rated the same as Malaysia and just below South Korea. The markets reacted positively as the Stock Exchange of Thailand rose 2.2 percent and the baht strengthened slightly. Spreads on Thai sovereign issues narrowed 10 to 15 basis points.

The government reported that the economy expanded 5.2 percent from the first quarter last year, the fifth consecutive quarter of expansion. The Thai economy plummeted 10.2 percent in 1998.

DAILO

Jun 26, 2000, 10:04 AM

Korea … win for the won

South Korea has announced plans to issue a total of ** trillion ($2.7 billion) in state bonds in 2000 to help underpin the South Korean currency.

South Korea issued W5 trillion in 1999 of foreign exchange stabilisation bonds to aid the overall control of the dollar-won exchange rate. An expected increase in dollar supply in 2000, from increased foreign investment amongst other things, could mean dollar-won fluctuation.

By issuing an additional W3 trillion bonds, the government has an increased ability to purchase a commensurate amount of US dollars in the open market and possess the means to support the won in turbulent times.

The plan will be submitted to the national assembly in an extraordinary session in July.

DAILO

Jun 26, 2000, 10:06 AM

Hong Kong heavyweights in the ring

Mass Transit Railway (MTRC) and Cheung Kong both stepped into the Hong Kong dollar ring this week to tap investors.

MTRC issued HK$150 million ($19.26 million) four-year notes through HSBC. The notes carry a 7.48 percent coupon due June 28, 2004.

Cheung Kong issued HK$500 million three-year notes through Societe Generale Asia. The notes carry a 7.35 percent coupon due July 3, 2003.

DAILO

Jun 26, 2000, 10:07 AM

Credit derivatives – Qantas widens, Lend Lease narrows

Traders report no shortage of prices quoted in credit default swaps on Australian names this week. One improving credit is Lend Lease. Five-year credit default swaps on Lend Lease are quoted by brokers at 55/64, according to SG Australia. ANZ Investment Bank says, in the previous week, offers on that swap moved in to 66 from 70 basis points.

However, prices for Qantas are moving in the opposite direction. Jason Cavanagh, a senior manager at Westpac Institutional Bank, says five-year Qantas swaps widened another five basis points to end trading on June 22 at 72.5 basis points. One-year credit protection on Qantas started the week offered at 30 basis points, says ANZ Investment Bank. It is currently offered at 33 basis points.

Traders say that there were no transactions reported through the brokers. However, one bank, with a tendency to deal directly with clients, managed to execute a few trades.

Cavanagh says, in general, credit protection for names in the telecommunications sector is well bid for in anticipation of a jumbo bond issue by Deutsche Telekom. The German telco is preparing to raise $8 billion in a multi-tranche offering. He says 10-year Telstra swaps are consolidating at their new wider level, with a midpoint of 65 basis points.

One-year Cable & Wireless Optus protection widened from 33 to 35 basis points on the offer, with a 27 basis point bid disappearing without trading, says SG Australia. Brokers are quoting five-year Cable & Wireless Optus at 65/75.

DAILO

Jun 26, 2000, 03:31 PM

US DOLLAR RATES

Ph Peso 42.890

Yen 104.35

HK Dollar 7.7910

Indonesia Rupiah 8,675

Thailand Baht 39.090

SG Dollar 1.7326

1 TW Dollar 30.798

Korea Won 1,117.6

1 Malaysian Ringgit 3.7998

Euro 1.0735

UK Pound 0.667

As of 7:32 AM GMT

DAILO

Jun 26, 2000, 03:36 PM

RP peso dips early on central bank's move

Manila, June 26, 1:46p -- The Philippine peso (PHP) weakened slightly against the U.S. dollar in early trade Monday after the central bank implemented a 3-tier pricing scheme in its overnight borrowing facility.

The scheme effectively reduced the rate to an average 8.5% from the fixed 10.0% in the past five weeks, traders said. At 0231 GMT, the U.S. dollar/peso averaged PHP42.893 against Friday's PHP42.845 close.

The pair rose to an early high of PHP42.905 after opening at PHP42.900 but eventually leveled to an early low of PHP42.870 amid a modest turnover of U.S. $33 million.

The central bank effectively cut its overnight borrowing rate so that has an effect on the exchange rate. I see the peso a little weaker today compared to Friday's close.

The central bank implemented earlier Monday a three-tier pricing scheme for its overnight borrowings, with the first five billion Philippine pesos (PHP) (U.S. $116.57 million) in placements still to be paid 10.0% but the next five to PHP10 billion to be paid 8.5% and those beyond PHP10 billion to be paid 7.0%.

The central bank's overnight lending rate was maintained at 12.25%. Central bank deputy Governor Amando Tetangco, Jr. said the tiering scheme should encourage banks to also lend to the private sector.

Traders said there were also renewed jitters over the security situation with the bombings in General Santos City at southern Philippines over the weekend.

Regional currencies were also slightly weaker against the U.S. dollar in early Asian trade, with the Thai baht seen quoted at 39.08 against 39.07 late Friday.

"I think the peso's slide to the PHP42.900 levels this morning is a reflection of these three factors -- the central bank cut in its overnight borrowing rate, the bombings in General Santos City and the dollar/baht is also slightly higher," dealers said.

But dealers said the dollar's rise against the peso may be capped at PHP42.950 due to weak corporate demand for the greenback at this level. A third trader said the dollar/peso enjoys good support at the PHP42.850 level.

DAILO

Jun 27, 2000, 10:57 AM

GOOD MORNING MANILA!
GOOD LUCK in your Trades today!

GREED IS GOOD! :D :D :D

DAILO

Jun 27, 2000, 02:17 PM

US DOLLAR RATES

Ph Peso 42.925

Yen 105.58

HK Dollar 7.7936

Indonesia Rupiah 8,668

Thailand Baht 39.065

SG Dollar 1.7310

1 TW Dollar 30.787

Korea Won 1,116.9

1 Malaysian Ringgit 3.7998

Euro 1.0636

UK Pound 0.6676

As of 5:04 AM GMT

DAILO

Jun 27, 2000, 02:19 PM

US/HK dollar seen up on low HIBOR

Hong Kong, June 27, 11:26a -- The U.S./Hong Kong dollar spot was trading higher in response to low HIBOR with better liquidity in the inter-bank market expected by Wednesday end, dealers said.

The pair was quoted trading at 7.7933-7.7935 in the morning, compared with 7.7924-7.7928 late Monday, dealers said.

The spot was trading higher as money managers moved into higher yielding U.S. dollars rather than the local unit, dealers said.

The aggregate balance, or the sum of the clearing accounts in the inter-bank market, is expected to be at H.K. $629 million (U.S. $81 million) by the end of Tuesday, but it is seen to be at $1.026 billion by Wednesday's close, the Hong Kong Monetary Authority (HKMA) said.

The overnight HIBOR remained trading under 6.0000% in the morning and was quoted at 5.5000% by one dealer.

Other term HIBOR were barely changed from their previous closing levels, with one-month, three-month and six-month HIBOR trading at 6.1250%, 6.5000% and 6.7500%, respectively, compared with 6.1875%, 6.5000% and 6.6875%, respectively Monday, dealers said.

DAILO

Jun 27, 2000, 02:21 PM

RP peso retains weak tone ahead of Fed, lower rates

Manila, June 27, 11:17a -- The Philippine peso (PHP) kept its soft pitch against the U.S. dollar in early trade Tuesday as banks preferred long dollar positions ahead of the Federal Reserve's verdict and lower domestic interest rates, traders said.

But players find no rush to aggressively buy the dollar yet and sees the peso's intra-day losses capped below the crucial PHP43 resistance. At 0207 GMT, the dollar/peso was bid at PHP42.945 against Monday's PHP42.910 close.

The pair opened at PHP42.920 and dealings were shortly squeezed within a slim 5.5-centavo trading range between PHP42.915-PHP42.970.

"People are playing safe and going a little long on the dollar since we are still waiting for the Fed action," said a major local bank trader.

Most analysts believe the Fed will keep the key federal funds rate unchanged at 6.50% after raising the rates six times in the past 12 months. The Fed is slated to start a two-day policy meeting later Tuesday and will come out with its ruling on Wednesday.

But traders said the pressure for the peso to further weaken remains amid an environment of lower local interest rates.

The central bank on Monday adopted a three-tiered scheme for its overnight borrowing rate where it pays 10% for the first five billion pesos (U.S. $116.4 million) placed overnight and 8.5% for the next five billion pesos. A lower 7% yield is paid on overnight funds in excess of 10 billion pesos.

For the past five weeks before Monday, the central bank's overnight borrowing rate was set at a uniform 10%.

The central bank move, done to boost bank lending, prompted an across-the-board decline in the Treasury bill rates at the auction Monday led by the benchmark 91-day T-bill, which slipped to 8.896% against the previous 8.911%.

A foreign bank dealer said dollar demand from banks with maturing non-deliverable forwards is also sapping the local currency. Volume traded at the Philippine Dealing System reached a measly U.S. $17 million more than an hour into trading.

The foreign bank dealer said he expects the dollar's strength limited to PHP42.980 for the rest of Tuesday's trading but says the pair may head towards the critical PHP43 level within the week.

"I think it will be difficult for the peso to strengthen beyond PHP42.900 at this point with the Fed factor and the lower interest rates for peso assets," said another local bank trader.

DAILO

Jun 28, 2000, 12:11 AM

US DOLLAR RATES

Ph Peso 43.095

Yen 105.58

HK Dollar 7.7946

Indonesia Rupiah 8,673

Thailand Baht 39.145

SG Dollar 1.7338

1 TW Dollar 30.798

Korea Won 1,117.1

1 Malaysian Ringgit 3.7998

Euro 1.0583

UK Pound 0.6639

As of 3:58 AM GMT

DAILO

Jun 28, 2000, 11:38 AM

US DOLLAR RATES

Ph Peso 43.075

Yen 105.53

HK Dollar 7.7945

Indonesia Rupiah 8,675

Thailand Baht 39.145

SG Dollar 1.7340

1 TW Dollar 30.801

Korea Won 1,117.1

1 Malaysian Ringgit 3.7998

Euro 1.058

UK Pound 0.6642

As of 3:37 AM GMT

AteRonee

Jun 28, 2000, 09:51 PM

Hi, Dailo! it's good to see someone posting these currency info updates here on PeX.

May I suggest that you identify the source of your posts, e.g.Reuters, Telerate, Bloomberg, Bridge,etc? 'Yung lang. Keep up the good work! :)

DAILO

Jun 29, 2000, 10:19 AM

LETS ALL WELCOME ATE RONEE!

WELCOME!

GREED IS GOOD! :D :D :D

ps. My feeds come from Reuters, Bridge, Bloomberg.

[This message has been edited by DAILO (edited 06-29-2000).]

DAILO

Jun 29, 2000, 10:24 AM

US DOLLAR RATES

Ph Peso 43.135

Yen 105.07

HK Dollar 7.7943

Indonesia Rupiah 8,673

Thailand Baht 39.125

SG Dollar 1.7333

1 TW Dollar 30.811

Korea Won 1,114.4

1 Malaysian Ringgit 3.7997

Euro 1.0615

UK Pound 0.6617

As of 2:24 AM GMT

DAILO

Jun 30, 2000, 10:13 AM

US DOLLAR RATES

Ph Peso 43.228

Yen 105.40

HK Dollar 7.7948

Indonesia Rupiah 8,725

Thailand Baht 39.135

SG Dollar 1.7335

1 TW Dollar 30.801

Korea Won 1,115.4

1 Malaysian Ringgit 3.7997

Euro 1.0511

UK Pound 0.6587

As of 2:13 AM GMT

DAILO

Jun 30, 2000, 10:16 AM

Good Morning PExRs!

Happy Trading !

GREED IS GOOD! :D :D :D

DAILO

Jul 4, 2000, 09:56 AM

Good Morning PExRs! I'm back!
Happy Trading !

GREED IS GOOD! :D :D :D

DAILO

Jul 4, 2000, 09:59 AM

US DOLLAR RATES

Ph Peso 43.553

Yen 106.19

HK Dollar 7.7954

Indonesia Rupiah 8,965

Thailand Baht 39.335

SG Dollar 1.7317

1 TW Dollar 30.810

Korea Won 1,113.6

1 Malaysian Ringgit 3.7998

Euro 1.0551

UK Pound 0.6609

As of 1:58 AM GMT

DAILO

Jul 4, 2000, 10:00 AM

RP peso falls to near 21-month low on domestic woes

Manila, July 3 -- The Philippine peso (PHP) slumped to its near 21-month low against the U.S. dollar Monday amid renewed security concerns after another bomb was found in a local bank at the Makati financial district, traders said.

Banks also found no incentive to part with their greenbacks due to the narrow differential between U.S. and domestic interest rates, they said. At 0800 GMT, the U.S. dollar/peso finished at PHP43.530 against Friday's PHP43.230 close.

Monday's close was the peso's weakest level since it settled at PHP43.680 on October 7, 1998.

The dollar/peso opened strongly at PHP43.350 amid softer regional currencies and continued to edge higher to break the critical PHP43.400 resistance and rose to its intra-day high of PHP43.580 before the close of morning trade following reports that local police has defused another bomb found inside the automated teller machine booth of a Makati branch of Metropolitan Bank and Trust Co, the country's biggest bank.

Despite the peso's sharp drop, total volume at the Philippine Dealing System, however, reached a paltry U.S. $98.1 million compared to $108.6 million the previous session. p>;"It's really because of a series of bad news. The region was weak and then there were the internal factors--the Abu Sayyaf reportedly having more hostages, violent protests against the oil price increase at the (Pilipinas Shell Petroleum Corp) head office last night and this morning the bomb found at Metrobank," a trader at a U.S. bank said.

Local newspapers said earlier Monday the Muslim group Abu Sayyaf abducted a German journalist Sunday and prevented a leader of a religious group and 12 of his followers from returning home Saturday. The alleged new hostages will add to the 20 mostly foreigners held captive by the Abu Sayyaf for more than 10 weeks already at the southern island of Sulu.

Meanwhile, various sectors were protesting the 55 centavo (U.S. $0.0127) per liter increase in petroleum prices which took effect Friday midnight. Dealers said most banks also preferred to hold on to dollars amid the narrow differential between U.S. and domestic interest rates.

"The overall sentiment (for the peso) remains (negative) because the interest rate differential remains small," a trader for another U.S. bank said.

The peso started to fall sharply last week after the central bank effectively reduced its overnight borrowing rate on June 26, bringing the yield to as low as 7% compared to the fixed 10% in past five consecutive weeks.

But central bank Governor Rafael Buenaventura earlier Monday blamed the peso's fall to weaker regional currencies led by the Indonesian rupiah, seeing no reason to intervene and rescue the local currency.

At 0919 GMT, the dollar/rupiah was quoted at 8,930, sharply higher against 8,728 in late Asian trade Friday after Indonesia's President Abdurrahman Wahid announced he would sanction the national police to arrest several legislators whom he blamed for many of country's problems.

Dealers said the peso may test its psychological PHP43.600 support Tuesday although weak demand for the greenback is expected as U.S. financial markets go on holiday and may limit the local unit's losses. -- Bridge News

wAgKaNgMaKuLiT

Jul 4, 2000, 04:30 PM

yun pound ba zero point something parin hanggang ngayon?
bakit yun nakikita ko sa CNBC lately parang one point something na ang pound?
gulat nga ako nataasan na ng dollar yun pound. :confused:

.

:D :D :D

DAILO

Jul 5, 2000, 12:08 AM

US DOLLAR RATES

Ph Peso 43.665

Yen 106.06

HK Dollar 7.7958

Indonesia Rupiah 9,085

Thailand Baht 39.345

SG Dollar 1.7338

1 TW Dollar 30.805

Korea Won 1,115.9

1 Malaysian Ringgit 3.7997

Euro 1.0509

UK Pound 0.6618

As of 3:59 AM GMT

DAILO

Jul 5, 2000, 12:10 AM

RP peso slips early on rupiah

Manila, July 5, 11:37a -- The Philippine peso (PHP) continued its decline against the U.S. dollar Wednesday amid a drought of dollar inflows and a sliding Indonesian rupiah, traders said.

But rumors of intermittent central bank intervention are capping the peso's fall, they said. At 0222 GMT, the dollar/peso was bid at PHP43.610 against Tuesday's local trading close of PHP43.535, a new low for the local currency in nearly 21 months.

The dollar/peso opened in local trading at PHP43.600 but shortly touched an early low of PHP43.595 on talk that the Bangko Sentral ng Pilipinas (Central Bank of the Phils.) indirectly sold dollars at the PHP43.600 level to contain the dollar's rise.

But traders said the central bank soon let go, prompting dollar bulls to bid the greenback higher and hit an early peak of PHP43.650.

"This time, the central bank is there selling at the PHP43.650 level," said a local bank dealer.

"There is a drought of dollar supply in the market unlike in May, when we saw some corporate inflows and remittances (from overseas Filipino workers). The weaker regionals, led by the rupiah, is also adding fuel to the fire," said a trader with a Dutch bank.

The dollar/rupiah was bid at 9,050 at 0245 GMT from 8,925 late Tuesday following news that a bomb went off late Tuesday in a building in the Attorney General's office complex.

Traders said most market players are quite cautious in bidding up the greenback amid the perceived presence of the central bank.

Central bank Governor Rafael Buenaventura has consistently denied intervening in the currency market to prop up the peso. He has said he is confident the dollar/peso will soon correct when the region's queasy nerves ease and U.S. interest rates become steady.

The dollar/peso breached the crucial 43 resistance on June 27 after the central bank adopted a three-tiered borrowing scheme that effectively cut its overnight borrowing rate to as low as 7% from a fixed rate of 10%.

Another local trader said news of a lower-than-expected inflation for June barely boosted the peso.

"I think most banks just shrugged off the inflation figures since they feel it's not quite reflective of reality," he said.

Philippine year-on-year inflation slipped in June to 3.9% from 4.1% in May on the back of lower inflation for food and services, the National Statistics Office said earlier Wednesday. It was the first time this year inflation posted a fall, bringing the January-June average to 3.5%, well below the government's 5-6% aim this year.

Traders said the dollar/peso will likely be supported at PHP43.600 level intra-day while eyeing the next resistance of PHP43.750. -- Bridge News

DAILO

Jul 8, 2000, 10:56 AM

Im back everyone... I've been busy... and let me correct that i am alive and well... i did not jump off a building as some of you who emailed me. I acknowledge the market sucks , however there are other markets... Theres a market open somewhere around the world even when ours is closed...

GREED IS GOOD! :D :D :D

DAILO

Jul 8, 2000, 10:58 AM

RP peso hits 44.00 despite talk of central bank aid

Manila, July 7, 1:22p -- The Philippine peso (PHP) fell to its critical PHP44.000 support in brisk trade early Friday despite rumors of central bank intervention and steady regional currencies as companies continued to accumulate dollars in anticipation of a further weakening in the local unit, dealers said.

The U.S. dollar/peso was bid at PHP43.980 against Thursday's PHP43.950 close in local trade.

The pair opened softly at PHP43.920 and briefly touched an early low of PHP43.910 before steadily rising to hit an early peak of 44.005 as total volume reached a sizable U.S. $49 million.

"We see some panic buying (of dollars) from corporates and individuals which is the same as yesterday. Earlier, the PDS (Philippine Dealing System) was supported at PHP43.950, presumably by the central bank, but it eventually gave way after seeing the huge dollar demand," said a senior trader at major local bank.

A trader from a foreign bank said the central bank possibly through two foreign banks was estimated to have sold $20 million but eventually abandoned its support for the local unit as the dollar/peso rate at the parallel market was already higher by a relatively wide margin of eight centavos, indicating huge corporate demand for the greenback.

Central bank Governor Rafael Buenaventura has consistently denied intervening at the spot market but he said that the monetary authority has been providing dollar liquidity from time to time to prevent a sharp peso fall.

Dealers said political uncertainties and low domestic interest rates continued to weigh on the local unit, impeding its recovery along with the rest of the region after their sharp declines Wednesday.

The Indonesian rupiah was bid at 9,298 against the dollar from 9,270 late Thursday after touching 9,450 Wednesday while the Thai baht was quoted at 39.58, hardly moving from 39.59 in late Asian trade Thursday.

Dealers said the dollar/peso will test the next resistance of PHP44.100 before moving on to try to pierce the major PHP44.200 barrier if negative market sentiment prevails. The pair is seen supported at PHP43.800.

"But we might see some profit-taking (on dollars) at the PHP44.150-PHP44.200 levels and allow some consolidation at these levels," a third dealer said. -- Bridge News

DAILO

Jul 8, 2000, 11:00 AM

US DOLLAR RATES

Ph Peso 44.025

Yen 107.91

HK Dollar 7.7958

Indonesia Rupiah 9,288

Thailand Baht 39.685

SG Dollar 1.7363

1 TW Dollar 30.836

Korea Won 1,117.5

1 Malaysian Ringgit 3.7998

Euro 1.0547

UK Pound 0.661

As of 20:51 PM GMT

DAILO

Jul 8, 2000, 11:33 AM

DAILO's DEBT CAPITAL BULLET POINTS

Japan Highway follows the dollar trail

Japan Highway Public borrowed $500 million on July 5 through a five-year fixed rate bond. The deal carries a 7.25 percent coupon and is managed by ABN AMRO. The bonds were priced at 103 basis points over the five-year Treasury note.

Shinhan Bank to issue in yen?

Shinhan Bank of Korea is reportedly looking to raise up to Y12 billion in the very near future.

Goldman Sachs to issue samurai bonds

Goldman Sachs intends to issue samurai bonds in the yen market in mid-July. The Y65 billion structure is slated to be a two-tranche deal of Y50 billion five-year and Y15 billion 10-year bonds.

Kinki yen borrower

Kinki Nippon Railway issued Y30 billion of 1.1 percent four-year yen bonds on July 6. The bonds were issued at par through Nomura Securities and are due July 23 2004.

Toyoda looms large

Toyoda Automatic Loom sold a total of Y40 billion in a split tranche transaction on July 5. The deal comprised 20 billion five-year notes at 1.25 percent coupon priced at 99.95 and Y20 billion 10-year notes at 1.91 percent coupon priced at 99.94.

Sumitomo Bank borrows five-years in yen

Sumitomo Bank turned to Daiwa Securities SB Capital Markets to raise Y100 billion in a five-year deal carrying a 1.31 percent coupon. The bonds were issued at a price of 99.98.

Cecile borrows Y10 billion

Cecile borrowed via Daiwa Securities SB Capital Markets for a Y10 billion five-year deal priced at par.

JFC borrows 50 billion yen

Japan Finance for Small Business issued Y50 billion of six-year notes through Nikko Salomon Smith Barney and Sanwa Securities on July 6. The notes carry a 1.2 percent coupon and were priced at 99.72.

DAILO

Jul 10, 2000, 09:46 AM

US DOLLAR RATES

Ph Peso 43.965

Yen 107.37

HK Dollar 7.7957

Indonesia Rupiah 9,260

Thailand Baht 39.685

SG Dollar 1.7359

1 TW Dollar 30.841

Korea Won 1,119

1 Malaysian Ringgit 3.7997

Euro 1.0539

UK Pound 0.6605

As of 1:46 AM GMT

DAILO

Jul 10, 2000, 03:12 PM

RP peso heals slightly in early range-bound trade

Manila, July 10 -- The Philippine peso (PHP) recovered marginally in early range-bound trade Monday against the U.S. dollar after slumping to near 22-month lows last week, in step with a firmer Indonesian rupiah, traders said.

The dollar/peso was bid at PHP44.010 in Asian deals after closing at a near 22-month peak of PHP44.030 in local trading Friday.

"It's a minor correction along with the rupiah but it's nothing great," said a trader from a U.K. bank, adding the peso's firmness may be short-lived owing to the generally bearish sentiment still pervading the market.

The rupiah was firmer against the U.S. dollar after opening around 9,300 to the dollar in early Monday trade in Jakarta as investors unloaded their long dollar positions. The dollar/rupiah was bid at 9,271 compared with 9,275 late Friday.

A trader with a U.S. bank said corporate demand for the greenback is starting to swell at the 43.980 level, thus establishing an immediate ceiling to the peso's recovery.

The pair opened at 44.020 but shortly crossed the critical 44.000 support to hit an early low of 43.980.

The central bank is out of the currency market, dealers said, giving players enough incentive to bid up the greenback freely in case the domestic front goes awry or regional sentiment sours anew.

Apart from the influence of softer currencies in the region, confidence in the local currency has waned due to the unsteady political situation in the country, led by the long-running Muslim insurgency conflict in the southern Mindanao region where several foreign hostages also remain captive by rebels for two and a half months now.

Central bank Governor Rafael Buenaventura maintains there is no need to intervene and prop up the local unit, confident the peso will soon see better days.

But a local dealer said the dollar/peso may be caught in range-bound trade for the rest of the session as banks pause to consolidate their positions. Volume traded at the Philippine Dealing System reached a measly U.S. $27.5 million.

Traders said the pair will likely be encased within the 43.950-44.050 band for Monday's trading. -- Bridge News

DAILO

Jul 10, 2000, 03:13 PM

US DOLLAR RATES

Ph Peso 44.240

Yen 106.67

HK Dollar 7.7957

Indonesia Rupiah 9,280

Thailand Baht 39.760

SG Dollar 1.7368

1 TW Dollar 30.839

Korea Won 1,117.3

1 Malaysian Ringgit 3.7997

Euro 1.0499

UK Pound 0.6588

As of 7:14 AM GMT

green grin

Jul 10, 2000, 03:26 PM

waaaahhhhhhhh!!!!!! ang baba ng peso!!!!! http://www.pinoyexchange.com/crying.gif

DAILO

Jul 11, 2000, 09:43 AM

RP central bank says it won't touch rates despite peso fall

Manila -- Philippine central bank Governor Rafael Buenaventura said yesterday the Philippine peso's (PHP) continued slump against the U.S. dollar is in "knee-jerk" reaction to the steady Treasury bill rates at the auction earlier Monday.

He said the central bank does not have any immediate plans to adjust its key overnight interest rates to give players incentive to flock back to the local currency.

"It's a knee-jerk reaction (to the T-bill results). The shorter end of the market is still competitive at about 9%," Buenaventura told BridgeNews by phone.

The peso fell to a day-low of 44.310 in local afternoon deals Monday, its fresh low in almost 22 months after closing at 44.030 on Friday.

The 91-day T-bill average rate was flat at 8.890% at the auction Monday with the government junking all bids for the longer term 182-day and 364-day T-bills in a bid to prevent a sharp rise in domestic interest rates. The Bureau of Treasury awarded only PHP600 million (U.S. $13.6 million) of its total PHP4-billion volume offered.

Asked if he is worried about the peso's constant decline, Buenaventura said: "No. That's (the) market."

He also maintained that the monetary authority is not intervening to rescue the local currency.

The central bank kept its overnight borrowing rate steady this week for the third straight week after adopting a three-tiered scheme on June 26 where it effectively cut its overnight borrowing rate to as low as 7% from a fixed rate of 10%.

As such, the central bank pays 10% for the first PHP5 billion placed overnight, 8.5% for the next PHP5 billion and 7% for funds in excess of PHP10 billion.

The overnight lending rate has been pegged at 12.25% for eight weeks now. -- Juliana Dancel, BridgeNews

DAILO

Jul 11, 2000, 09:44 AM

US DOLLAR RATES

Ph Peso 44.675

Yen 107.03

HK Dollar 7.7958

Indonesia Rupiah 9,310

Thailand Baht 39.935

SG Dollar 1.7404

1 TW Dollar 30.835

Korea Won 1,116.4

1 Malaysian Ringgit 3.7997

Euro 1.0478

UK Pound 0.6602

As of 1:45 AM GMT

DAILO

Jul 11, 2000, 09:45 AM

GOOD MORNING PEEPS!

Good luck on all your Trades!

GREED IS GOOD! :D :D :D

DAILO

Jul 11, 2000, 09:51 AM

RP gov’t looks at 25-year bonds as borrowing option

Manila -- The Philippine government is considering issuing $300-million worth of either long-term floating rate notes or syndicated loans in the domestic market in order to raise money to close its budget gap.

Philippine central bank governor Rafael Buenaventura said the government has at least three options to raise about $300 million and complete its programmed borrowings for this year.

"We have three options. There is the Euro bond market, the FCDU market, and there is also the possibility we could issue floating rate notes or syndicated loans locally," said Buenaventura.

There have been market talks that the Department of Finance is seriously considering raising three to five billion Philippine pesos (PHP) from the domestic market by issuing 25-year bond instruments.

Sources said the offer came from a large foreign bank that proposed to underwrite the offering. The bank proposed to offer PHP10-PHP12 billion in the long-term bond market. The subscription to the instrument would constitute compliance to the agri-agra law for banks.

"Rather than borrow abroad and pay the same rates, we should just opt to raise our long-dated rates. Borrowing locally would not crowd out the private sector," said Buenaventura.

Buenaventura said the International Monetary Fund would not object to the medium-term floating rate notes. The Fund earlier objected to the government's move to borrow locally on a short-term basis.

Buenaventura also proposed to the government to allow the increase of interest rates of debt instruments maturing five years and up in order to prevent investments from shifting to foreign currencies. This move is also aimed at helping strengthen the peso.

The proposal has placed the central bank at odds with the Bureau of Treasury which has been trying to keep local interest rates, both short and long-term, modest and stable.

DAILO

Jul 11, 2000, 10:04 AM

Philippine Treasurer expects rates at T-bill auction to be steady

MANILA (AFX-ASIA) - Average rates at the Philippine Treasury bill auction later are expected to be stable due to the national government's strong cash position, National Treasurer Leonor Briones told AFX-ASIA by telephone interview.

"We have a very strong cash position. For as long as we have that, our rates will remain steady," Briones said, adding that based on experience, "for the last two years, there have been several attacks on the peso but rates did not go up."

"No less than the central bank and (Economic Planning) Secretary (Felipe) Medalla have said very clearly that the peso's weakness is a temporary phenomenon so I do not know if raising interest rates will be of any help," Briones added.

The peso last Friday breached support at 44 against the dollar to close at 44.030. At 10:02 am, it stood at a weighted average of 43.996.

Briones said she will be presenting to Finance Secretary Jose Pardo a sensitivity analysis of the impact of certain rate increases. "If interest rates rise, our debt service increases," she said,reacting to newspaper reports quoting Pardo as saying that full awards may be undertaken for long-dated government papers.

Briones said that had government made a full award at the auction for 5-year bonds last Tuesday, the rate would have gone up by 100 basis points. At the said T-bond auction, the Treasury accepted only 1.230 of 3.0 bln pesos offered.

At the T-bill auction last Monday, the Treasury also made partial awards for the 6-month and 1-year bills.

Briones added the Treasury has no plans to cut its 4.0 bln peso weekly T-bill offer.

[This message has been edited by DAILO (edited 07-11-2000).]

DAILO

Jul 12, 2000, 10:10 AM

RP gov't takes hands-off stance on falling peso

Manila -- Philippine central bank Governor Rafael Buenaventura said Tuesday he is not worried about the peso's fall to its 45 support against the U.S. dollar as he reiterated that the monetary authority will allow the market to dictate the dollar/peso level.

The Philippine peso (PHP) crashed to its 45 support a few minutes after the open of afternoon local trade before dropping further to a low of 45.140 against Monday's 44.305 close.

"I am not concerned. That's the market. We will let the market determine the exchange rate," Buenaventura said when asked if he is worried about the peso's fall to the 45 level.

He said the peso continued to be weak along with other currencies in the region as regional currency markets still have to digest the impact of the previous increases in U.S. rates.

"I think, the (hike) in U.S. interest rates has not sank in yet in the region. And consequently, it has to take its course for people to believe that the Fed (U.S. Federal Reserve) will not hike interest rates in the next six months," he said.

He said political uncertainties in the region, including the long-standing Muslim insurgency problem in the southern Mindanao region in the Philippines, had been contributing to market jitters which led to the regional currencies' weakening.

"There's a degree of apprehension on regional uncertainties which is grossly exaggerated (and) it's weighing down on all currencies (in the region)," Buenaventura said.

He also said the shift into dollar assets from peso investments by bank depositors also helped pull down the peso.

He said the central bank will review the dollar transactions of banks and their foreign exchange subsidiaries to ensure that there is no speculation against the peso.

Buenaventura reiterated the central bank is not providing dollar liquidity at the local currency market to curb the peso's fall since he said there's enough dollars for normal trading requirements.

He added the peso continued to be competitive as long as it is moving along with the declines in other regional currencies.

Key overnight rates
Meanwhile, Buenaventura said there may be no need for the monetary authority to adjust its key overnight rates despite the peso's fall beyond the critical 45 support level. Buenaventura also said the peso's decline may have limited impact on inflation.

"There doesn't appear to be a need to change the overnight rates," Buenaventura said when asked if the central bank will adjust its key policy rates to curb the peso's fall.

Buenaventura also said the peso's fall to the 45 level may not have a major impact on inflation. "The peso at 45 will have inflationary impact but it will not be as major as people think," he said.

He said the government remains on track with its targeted 5-6% average inflation for the year. The country's average inflation stood at 3.5% in January-June. -- Bridge News

DAILO

Jul 12, 2000, 10:11 AM

RP peso falls to 30-month low at 44.820

Manila, July 11 -- The Philippine peso (PHP) crashed to a 30-month low against the U.S. dollar Tuesday as companies with dollar obligations scrambled to purchase greenbacks fearing a continued rise in the U.S. dollar/peso rate, dealers said.

The central bank was said to have supported the sinking peso allowing it to slightly recover at the close after breaching the critical 45.000 barrier. The pair ended at 44.820 against Monday's 44.305 close.

Tuesday's close was the peso's weakest level since it settled at 44.920 on Jan. 8, 1998.

The pair opened at its day's low of 44.450 and steadily rose to breach one resistance level after another to hit an intra-day peak of 45.150 amid a hefty volume of U.S. $146.3 million against $91.3 million the previous session.

"The corporates panicked today. There were a lot of corporates buying dollars, mostly local companies," said a dealer from a Dutch bank.

"Everybody was spooked when they saw the dollar/peso approaching the 45 level. And it's the third year anniversary of the currency crisis. But really, there was negative sentiment on the Philippines so most people preferred holding dollars over pesos," said a second trader from a major local bank.

Dealers said there was no incentive to hold on to peso assets due to the narrow differential between U.S. and domestic interest rates. They said the central bank had also been firm in its position to keep its key overnight rates steady despite the continued fall of the peso.

Central bank Governor Rafael Buenaventura said earlier Tuesday the central bank will not adjust its key overnight rates despite the peso's fall to the 45 levels.

A third trader said the central bank intervened by selling dollars at the spot market at the 45.100 level which allowed the local unit to close off its day's low.

But Buenaventura maintained the central bank is not providing dollar liquidity as the monetary authority is allowing market forces to dictate the dollar/peso rate.

Dealers said the dollar/peso will likely take its cue from other regional currencies Wednesday although the sentiment for the peso remains bearish due to low domestic short-term interest rates.

The second dealer said the peso may again test its 45.000 support against the dollar before moving on to the next 45.500 barrier.

The pair may also try to reach for its record intra-day high of 46.500 if negative sentiment on the peso prevails in the near to medium term. -- Bridge News

DAILO

Jul 12, 2000, 10:12 AM

US DOLLAR RATES

Ph Peso 44.935

Yen 107.33

HK Dollar 7.7956

Indonesia Rupiah 9,410

Thailand Baht 40.085

SG Dollar 1.7436

1 TW Dollar 30.852

Korea Won 1,115

1 Malaysian Ringgit 3.7997

Euro 1.0521

UK Pound 0.6601

As of 2:13 AM GMT

DAILO

Jul 12, 2000, 10:38 AM

Medalla: central bank should not intervene if peso falls on regional influence

MANILA (AFX-ASIA) - The central bank should not intervene if the peso's weakness is brought about by the decline of other currencies in the region, Economic Planning Secretary Felipe Medalla said.

Medalla told radio station DZMM that in recent days, the peso's fall has been largely due to external influences.

"I think what the central bank should do is to allow sentiment to settle down. Once sentiment ebbs, I think that is maybe the better time for the central bank to sell (dollars)," Medalla said.

"I think our fundamentals point to a stronger peso before the end of the year," Medalla said.

"It's difficult for the central bank to intervene, especially if sentiment regionwide is for a stronger dollar, because the Philippines is a very small market," Medalla added.

At 10:15 am, the peso stood at a weighted average of 45.045/dollar compared with yesterday's close of 44.820. It hit an intraday low of 45.100.

DAILO

Jul 12, 2000, 03:16 PM

RP peso continues free fall early; eyes 45.20 mark

Manila, July 12, 11:35a -- The Philippine peso extended its weak pitch against the U.S. dollar in early trading Wednesday amid steady corporate demand for the greenback and softer regional currencies led by the Thai baht, traders said.

The market remains cautious and traders said the pair is eyeing the next critical level of 45.200 but are not ruling out more volatile swings as domestic sentiment remains impaired. The dollar/peso opened at 44.980 but shortly breached the 45 resistance to hit an early peak of 45.100.

The dollar/peso was bid at 45.020 in Asian deals after closing at a 30-month peak of 44.820 in local trading Tuesday.

"The entire region looks weak and it's not a good time to oversell the market. Exporters are holding on to their dollars," said a major local bank trader.

The dollar/baht was bid at 40.075 versus 40.020 late Tuesday while the Indonesian rupiah was quoted at 9,404 compared to 9,315 late Tuesday.

"There's still no good news locally to buy up the peso so everyone's set on testing how far the dollar can go," said a trader with a U.S. bank, adding market players are eyeing to bring the pair to its all time intra-day high of 46.50 last touched on Jan. 7, 1998 in the near term.

"Panic is still in the air since the crucial levels were breached. Companies are all looking to hedge their obligations," said another foreign bank dealer. The central bank has not been rumored to intervene in early dollar/peso transactions, giving players enough leverage later to bid up the greenback, dealers said.

Economic Planning Secretary Felipe Medalla told private radio station DZMM Wednesday that it may be a futile attempt if the central bank will intervene in the currency market if regional sentiment is for a strong U.S. dollar.

"It's difficult to intervene if the sentiment is region-wide," Medalla said reiterating that the country's strong fundamentals such as a strong current account surplus support a recovery of the peso towards the 42-42.50 levels towards year-end.

The country's current account yielded a surplus of $1.538 billion in January-March, albeit slightly lower than the year-ago surplus of $1.545 billion.

"We won't correct unless the entire region corrects," said a fourth dealer adding that he sees the pair thinly supported at the 44.900 level. Traders said the pair may test 45.200 before heading further north to the next critical level of 45.500.

Jonathan Ravelas, market strategist at Equitable PCIBank, said a rally for the pair towards the 45.700 level is "possible" before a correction takes place provided the 44.500 support is not breached.

"Otherwise, a break below 44.500 could give way to the much awaited correction towards the 43.800-44 level," he said. -- Bridge News

DAILO

Jul 12, 2000, 03:16 PM

US DOLLAR RATES

Ph Peso 44.735

Yen 107.32

HK Dollar 7.7958

Indonesia Rupiah 9,475

Thailand Baht 40.065

SG Dollar 1.7424

1 TW Dollar 30.856

Korea Won 1,115.4

1 Malaysian Ringgit 3.7998

Euro 1.054

UK Pound 0.6607

As of 7:16 AM GMT

DAILO

Jul 12, 2000, 03:21 PM

Buenaventura: No central bank intervention in forex

MANILA (AFX-ASIA) - The central bank continues to stay out of the currency market on the view that the peso's weakness is driven by adverse regional sentiment, governor Rafael Buenaventura said.

"We are not intervening today," Buenaventura said, adding that "the exchange rate is principally being driven by regional sentiment."

He also said the central bank is standing firm on its position that it is not necessary to adjust key interest rates.

"We're trying to address the interest rate on longer-dated papers. The short-term (instruments) are still at appropriate levels."

He said the 50-basis point increase yesterday in the coupon rate of the 7-year Treasury bond "should prevent more shifting of funds to dollar assets, " noting that the higher yield should make domestic government securities "quite comparable with U.S.-dollar denominated papers."

Buenaventura said the central bank has ordered a review of the consolidated overbought position of banks, which should not exceed 10 pct of their unimpaired capital.

"I reminded them of the old circular. I think we're going to reissue it. They should be sure they also have a list of their forex transactions and the amounts involved," he said.

"They should exercise a little discretion when they sell, who they are selling (to)," he added.

At 2:25 pm, the peso was at 44.942 to the dollar against yesterday's close of 44.820.

manabs

Jul 12, 2000, 05:25 PM

Hi Dailo. AAARRRRRGGGGHHHHHH! Peso going down again? Where do you think it's going to stabilize? Our company imports a lot of stuff but we can fix if we buy now. You think that's smart or would it be better to wait for a better exchange rate before taking action? PLEASE HELP!!! SNIFF, SNIFF. :(

DAILO

Jul 13, 2000, 09:46 AM

Good Morning PExers!

Happy Trading today!

GREED IS GOOD! :D :D :D

JDELEON

Jul 14, 2000, 06:56 AM

Unofficial rumor. DOLLAR will top off at 46.50 (within 2 weeks) then settle to 42.50 (slowly...).

DAILO

Jul 14, 2000, 10:15 AM

DAILO

Jul 14, 2000, 10:21 AM

RP peso slips at close on oil dollar demand, rupiah

Manila, July 13 -- The Philippine peso (PHP) purged early gains and slid at the close of Thursday's trade against the U.S. dollar in sizable volume as oil companies picked up dollars to service requirements and regional sentiment remained soft led by the Indonesian rupiah, traders said.

The dollar/peso closed at 44.705 against Wednesday's 44.665 close.

The peso rose to an intra-day peak of 44.430 in morning deals but surrendered those gains quickly when it slipped to a day-low of 44.752 in the afternoon session. Volume traded at the Philippine Dealing System stood at U.S. $145.3 million from $162.4 million Wednesday.

"Oil companies with dollar requirements emerged and the rupiah was weaker," said a foreign bank dealer.

Lingering political uncertainties continued to pound the rupiah which was bid at 9,430 to the greenback against 9,420 late Wednesday.

But a local major bank dealer thinks the dollar/peso pair is merely consolidating after experiencing wild swings in recent sessions.

"I think right now, the peso is just being swayed by the behavior of the regionals. There's nothing to panic about unlike the past sessions," he said.

The peso began recovering against the greenback Wednesday after falling to a 30-month intra-day low of 45.150 Tuesday. Banks unwound long dollars until Thursday morning but turned cautious when regional sentiment turned shaky anew.

Traders said a statement by central bank Governor Rafael Buenaventura earlier Thursday that he expects the peso to continue its recuperation until next week barely boosted the local unit which followed the pace of other regional currencies.

The pair is seen to be encased in a tighter trading range of 44.600-44.800 on Friday, barring any sharp movements of its counterparts in the region, dealers said. -- Bridge News

DAILO

Jul 14, 2000, 10:22 AM

US DOLLAR RATES

Ph Peso 44.545

Yen 108.35

HK Dollar 7.7962

Indonesia Rupiah 9,445

Thailand Baht 39.985

SG Dollar 1.7415

1 TW Dollar 30.887

Korea Won 1,112

1 Malaysian Ringgit 3.7997

Euro 1.07

UK Pound 0.665

As of 2:21 AM GMT

DAILO

Jul 14, 2000, 11:21 AM

Pardo: No need for central bank to raise overnight rates next week

MANILA (AFX-ASIA) - Finance Secretary Jose Pardo said there is no need for the central bank to raise its overnight rates next week as the government is optimistic the peso will recover.

"There is no need to increase overnight rates. We are reviewing the exchange rate and we are confident there should be an improvement," Pardo, a member of the central bank's policy-making Monetary Board, told reporters.

At 10:05 am, the peso stood at a weighted average of 44.608 to the dollar against yesterday's close of 44.705.

The central bank has maintained a tiered scheme for its overnight borrowing rate for the second straight week, effectively bringing down the rate to 8.5 pct from 10.0 pct. It pegged its overnight lending rate at 12.25 pct.

DAILO

Jul 14, 2000, 11:28 AM

Pardo: Govt to review forecast for peso to average 42.0/usd in 2000

MANILA (AFX-ASIA) - The government will review its forecast for the peso to average 42 against the dollar this year after the peso's recent weakness, Finance Secretary Jose Pardo said.

"On the forex, we have to revisit our forecast of 42 to one dollar. This is the projection used for our fiscal programme," Pardo said.

He said that every time the unit weakens one peso against the dollar, debt service rises by 7 bln pesos, while every percentage point rise in the 91-day Treasury bill average rate raises debt service by 9 bln pesos.

DAILO

Jul 17, 2000, 10:22 AM

Good morning PExers!

How was everyone's weekend? Mine was great!
Good luck in your trades :)

GREED IS GOOD! :D :D :D

DAILO

Jul 17, 2000, 10:27 AM

RP central bank sees peso improving to below 44 vs US dollar

Manila -- Philippine central bank Governor Rafael Buenaventura said Friday he expects the Philippine peso (PHP) to strengthen below the 44 level against the U.S. dollar on the back of the country's strong economic fundamentals, reiterating that the peso's recent slump was "overdone."

"It (peso) should improve below 44," said Buenaventura. Asked when he sees the pair easing to that level, he said: "It's hard to say but definitely (it will go) below 44."

"The fundamentals today versus the fundamentals of 1997 are vastly different," he said referring to the Asian regional currency crisis three years ago that prompted the local central bank to allow the peso to devaluate.

The peso rose to a morning peak of 44.500 against the U.S. dollar Friday amid lack of corporate dollar demand which inspired dollar sellers, after closing at 44.705 Thursday and falling to a 30-month intra-day low of 45.150 Tuesday.

Buenaventura said he believes the peso's recent plunge was more of a "temporary hiccup" which is linked to domestic political uncertainties. The peso's recovery materialized despite the central bank's decision not to touch its key overnight rates to attract investors in peso assets.

Buenaventura said earlier Friday the overnight rates will be kept at current levels on Monday. The central bank has kept its three-tiered overnight borrowing rate steady for three weeks now, paying 10% for the initial PHP5 billion (U.S. $112.2 million) placed overnight, 8.5% for the next PHP5 billion and 7% for those in excess of PHP10 billion. Its overnight lending rate has been pegged at 12.25% for eight weeks now.

Central bank key rates
Philippine Finance Secretary Jose Pardo said Friday he does not see any need for the central bank to adjust its key overnight rates on belief the peso will sustain its recovery against the U.S. dollar amid expectations of dollar inflows.

Asked whether there's a need to adjust overnight rates, Pardo, who is a member of the central bank's policy-making Monetary Board, said: "No. As I said earlier, we believe the peso will recover soon."

"We're optimistic that with inflows, we see a (peso) recovery to happen," he added.

The central bank’s overnight lending rate has been pegged at 12.25% for eight weeks now. Pardo said the overnight rate direction next week won't even be in the agenda of the weekly Monetary Board meeting later Friday. He said he expects bulk of the dollar inflows to come from seasonal remittances of overseas Filipino workers.

Executive Secretary Ronaldo Zamora is confident the local unit can strengthen to the 41.50-42 levels very soon citing the country's strong economic fundamentals.

Pardo said the government's original estimate is for the peso to average 41 to the greenback this year but says this will have to be reviewed.

He said the every one peso depreciation in the dollar/peso average rate translates to about PHP7 billion more for the country's debt servicing requirements while every one percentage point rise in the benchmark 91-day Treasury bill average rate raises the government's debt service by PHP9 billion pesos.

The Finance chief said he is confident that T-bill rates will not rise at the auction Monday citing the government's strong cash position. "I'm confident that it will move sideways (T-bill rates). I think the market knows that we have a deep pocket," he said.

The government accepted only partially bids for 91-day T-bills at Monday's auction and rejected all tenders for the 182-day and 364-day papers to prevent a sharp rise in domestic interest rates. -- Bridge News

DAILO

Jul 17, 2000, 10:29 AM

US DOLLAR RATES

Ph Peso 44.525

Yen 108.08

HK Dollar 7.7961

Indonesia Rupiah 9,505

Thailand Baht 40.125

SG Dollar 1.7458

1 TW Dollar 30.877

Korea Won 1,112.5

1 Malaysian Ringgit 3.7998

Euro 1.0661

UK Pound 0.6671

As of 2:30 AM GMT

DAILO

Jul 17, 2000, 10:41 AM

PHILIPPINES STUMBLES... AGAIN

The Republic of the Philippines was forced to cut back its first offering of yen securities since 1996 on July 13 by 30 percent to Y35 billion ($325.52 million), as well as shelving a planned Y10 billion seven-year issue. This was despite press speculation that the entire sale would be cancelled in the aftermath of the Hainan International Trust and Investment (Hitic) missed interest payment.

The five-year samurai bonds have a coupon of five percent and are being issued at a spread of 193 basis points over the five-year yen swap rate. Nikko Salomon Smith Barney and Daiwa Securities are managing the sale. The bonds are being offered between July 17 and 28 and will be formally issued on August 2.

The Philippines’ Department of Finance said the sale “generated wide participation from institutional investors and retail accounts”. The Republic has registered to sell up to Y100 billion with the Ministry of Finance in Tokyo.

“They have been incredibly unlucky,” says one senior portfolio manager at an asset management company in Hong Kong, “though some might be less charitable. What with the massive widening of the dollar issue, the cancellation of the euro and now this, all told they have had a bad run.”

DAILO

Jul 18, 2000, 10:37 AM

US DOLLAR RATES

Ph Peso 44.595

Yen 108.07

HK Dollar 7.7967

Indonesia Rupiah 9,470

Thailand Baht 40.285

SG Dollar 1.7469

1 TW Dollar 30.933

Korea Won 1,113

1 Malaysian Ringgit 3.7998

Euro 1.0691

UK Pound 0.6697

As of 2:33 AM GMT

DAILO

Jul 18, 2000, 10:38 AM

Good Morning PExers!

Happy Trading! Any hot tips?

GREED IS GOOD! :D :D :D

DAILO

Jul 31, 2000, 09:57 AM

RP peso flirts with 45; central bank talk caps loss
Manila, July 28, 11:30a -- The Philippine peso reversed its firm path in the previous session and slipped in early trade against the U.S. dollar Friday in tandem with the Thai baht's weakening, traders said.

But the dollar-buying momentum lost steam early on rumors of central bank intervention. The dollar/peso was bid at 44.945 against Thursday's 44.875 close.

The dollar/peso opened strongly at 44.900 but soon hit an early ceiling at 44.980 on rumors that the central bank was indirectly selling dollars at the 44.970-44.980 levels to keep the pair off the critical 45 mark.

"It's the usual story. We're just tracking the baht and nobody wants to go home short (on dollars) for the weekend," said a local trader. The dollar/baht was bid at 41.08 in early Asian activity from 40.97 late Thursday.

Dollar/peso players usually watch the dollar/baht's pace for directions since the Philippines and Thailand are deemed comparable in terms of export markets and economic set-up.

However, traders said the central bank is not likely to let the peso suffer as much as the baht since apart from talk of intervention, a foreign bank dealer said the central bank is closely monitoring banks' dollar purchases in early Friday deals.

Central bank officials were not immediately available to comment but central bank Governor Rafael Buenaventura said Thursday it will be futile to intervene and prop up the local currency considering that the peso's fate is being dictated by the weak regional trend.

However, presidential aide Ronaldo Zamora aired his concern on the peso's sharp fall Wednesday and hinted the central bank should intervene in the dollar/peso spot market.

The peso swooped to a 30-month low of 45.070 on Wednesday which was largely blamed on a sliding baht.

"I think the central bank will be intervening intermittently. If there will be legitimate corporate demand (for the dollar) at these levels, it may let go and try to intervene again later," said a third dealer.

Traders estimate the central bank may have unloaded about half of the volume turnover which reached a sizable U.S. $69 million nearly two hours after trading began.

Dealers said there was talk that the central bank support may limit the peso's intra-day losses at the 45 mark with initial resistance pegged at 44.850. -- Bridge News

DAILO

Jul 31, 2000, 09:57 AM

US DOLLAR RATES

Ph Peso 45.035

Yen 109.43

HK Dollar 7.7978

Indonesia Rupiah 9,000

Thailand Baht 41.575

SG Dollar 1.7330

1 TW Dollar 31.050

Korea Won 1,117.6

1 Malaysian Ringgit 3.7997

Euro 1.0827

UK Pound 0.6652

As of 1:58 AM GMT

DAILO

Aug 3, 2000, 11:06 AM

Philippine peso recovers in line with firmer Thai baht

Manila, Aug. 2 -- The Philippine peso slightly healed against the U.S. dollar Wednesday, piggybacking on the strength of the Thai baht and amid weak corporate demand for the greenback, dealers said. At 0800 GMT, the dollar/peso finished at a six-day low of 44.790 against Tuesday's 44.860 close.

"The peso appreciated because the baht strengthened and there was not much demand for dollars. And I think in any market, there has to be a correction," said a trader from a Dutch bank. -- BridgeNews

DAILO

Aug 3, 2000, 11:06 AM

US DOLLAR RATES

Ph Peso 44.800

Yen 108.94

HK Dollar 7.7985

Indonesia Rupiah 8,793

Thailand Baht 40.880

SG Dollar 1.7273

1 TW Dollar 31.088

Korea Won 1,114.5

1 Malaysian Ringgit 3.7998

Euro 1.0924

UK Pound 0.6694

As of 3:06 AM GMT

DAILO

Aug 4, 2000, 09:34 AM

Philippine peso tad down early as importers buy dollars

Manila, Aug. 3 -- he Philippine peso dipped in early thin trade against the U.S. dollar Thursday as importers decided to start buying dollars to pay for their shipments despite a continuing recovery in the Thai baht, dealers said. The market also appears to favor holding long dollar position at the moment due to prevailing domestic uncertainties, they said. At 0241 GMT, the pair was bid at 44.795 against Wednesday's 44.790 close in local trading.

The dollar/peso opened slightly weaker at its early low of 44.770 where it was stuck for almost 50 minutes after trading began with only U.S. $2 million changing hands as players waited for clearer signals on where the exchange rate is heading.

But the pair edged higher as dollar demand set in, touching an early peak of 44.830 amid a modest turnover of $30.5 million at 0241 GMT.

"The market is relatively quiet as it waited for a trend to emerge. But there's an upside for the dollar because of expected commercial demand from importers. And at these times, it's always better to be long in dollars," said a dealer from a major local bank.

Traders said the peso will likely move in a tight range between 44.750-44.850 as the market remained cautious to buy up the dollar amid a strengthening baht.

The dollar/baht was quoted at 40.880 in early Asian activity from 41.07 late Tuesday.

A second dealer from a U.K. bank said the dollar's rise against the peso may be capped at 44.850 as players will likely start selling their greenbacks at this level to immediately pocket some profits.

Dealers said the market continue to be bearish on the peso due to prevailing domestic uncertainties with the prolonged Muslim insurgency problem at the southern Mindanao region which could dampen economic growth. -- BridgeNews

DAILO

Aug 4, 2000, 09:34 AM

US DOLLAR RATES

Ph Peso 44.665

Yen 108.49

HK Dollar 7.7968

Indonesia Rupiah 8,600

Thailand Baht 40.685

SG Dollar 1.7236

1 TW Dollar 31.064

Korea Won 1,115

1 Malaysian Ringgit 3.7997

Euro 1.1057

UK Pound 0.6689

As of 1:35 AM GMT

DAILO

Aug 4, 2000, 09:36 AM

HSBC, Chase Manhattan see RP gov’t 2000 budget gap reaching PHP80B

Manila -- The Philippine government is expected to incur a wider-than-targeted budget deficit of 80 billion pesos (U.S. $1.8 billion) in 2000, said Hongkong and Shanghai Banking Corp. (HSBC) as Chase Manhattan projects a higher deficit of more than PHP100 billion for the same period.

The government is hoping to cap its budget deficit at PHP62.5 billion this year from PHP111.7 billion in 1999.

The government's budget gap reached PHP47.694 billion in January-June, about 42% above the target for the period, due to revenue shortfalls and accelerated state spending for the conflict-torn southern Mindanao region.

However, HSBC stressed that but a budget gap of this size should not be worrisome. “Note also that our own 80-billion-peso fiscal deficit forecast for 2000 is still an acceptable 2.5% of GDP (gross domestic product)," the U.K.-based bank said.

"The bottom line is official management of the fiscal accounts, while likely to fall short of this year's official target, is still nevertheless an improvement from last year," it added.

HSBC said the market will likely keep a close eye on the government's fiscal deficit "although we maintain our view that the issue is not as significant a problem as generally perceived."

The government is expecting its budget gap to widen further to PHP85 billion in 2001 to accommodate more economic pump-priming.

Meanwhile, Chase Manhattan expects deficit this year to amount to 3.2 percent of the gross domestic product compared to 3.7 percent last year and a target of 1.8 percent of GDP this year.

The growth in GDP, said Chase, should be a modest 3.5 percent compared to the government’s target of 4 to 5 percent.

The government aims to increase tax revenue by 18 to 19 percent from the current level of 16 percent of GDP.

“We continue to believe the full year deficit target of P62.5 billion will not be met particularly in the light of the P47.7 billion deficit in the first half,” said the US investment bank in a newly-published country review.

Chase added that tax evasion remains a major concern despite government’s increased efforts to improve revenue collection. Only 40 centavos of every peso in taxes is actually collected, it noted.

The Department of Finance said that Chase Manhattan is among several banks who have offered to underwrite in full the government’s planned US$370 million borrowings from the foreign currency deposit units this year.

The government has definitely ruled out any foreign bond float this year because of wide spreads, he said and noted that the other option for the year is to float peso-denominated bonds through the small-denominated treasury market.

The spreads of US$1.3 billion in global bonds the government had issued in March has widened from 646 to 673 basis points over Libor.

The government plans to start a road show to sell the PHP5 billion worth of Progress Bonds it would issue to retail investors. The bonds could be converted into shares into government assets to be sold later. – with BridgeNews HSBC, Chase Manhattan see RP gov’t 2000 budget gap reaching PHP80B

Manila -- The Philippine government is expected to incur a wider-than-targeted budget deficit of 80 billion pesos (U.S. $1.8 billion) in 2000, said Hongkong and Shanghai Banking Corp. (HSBC) as Chase Manhattan projects a higher deficit of more than PHP100 billion for the same period.

The government is hoping to cap its budget deficit at PHP62.5 billion this year from PHP111.7 billion in 1999.

The government's budget gap reached PHP47.694 billion in January-June, about 42% above the target for the period, due to revenue shortfalls and accelerated state spending for the conflict-torn southern Mindanao region.

However, HSBC stressed that but a budget gap of this size should not be worrisome. “Note also that our own 80-billion-peso fiscal deficit forecast for 2000 is still an acceptable 2.5% of GDP (gross domestic product)," the U.K.-based bank said.

"The bottom line is official management of the fiscal accounts, while likely to fall short of this year's official target, is still nevertheless an improvement from last year," it added.

HSBC said the market will likely keep a close eye on the government's fiscal deficit "although we maintain our view that the issue is not as significant a problem as generally perceived."

The government is expecting its budget gap to widen further to PHP85 billion in 2001 to accommodate more economic pump-priming.

Meanwhile, Chase Manhattan expects deficit this year to amount to 3.2 percent of the gross domestic product compared to 3.7 percent last year and a target of 1.8 percent of GDP this year.

The growth in GDP, said Chase, should be a modest 3.5 percent compared to the government’s target of 4 to 5 percent.

The government aims to increase tax revenue by 18 to 19 percent from the current level of 16 percent of GDP.

“We continue to believe the full year deficit target of P62.5 billion will not be met particularly in the light of the P47.7 billion deficit in the first half,” said the US investment bank in a newly-published country review.

Chase added that tax evasion remains a major concern despite government’s increased efforts to improve revenue collection. Only 40 centavos of every peso in taxes is actually collected, it noted.

The Department of Finance said that Chase Manhattan is among several banks who have offered to underwrite in full the government’s planned US$370 million borrowings from the foreign currency deposit units this year.

The government has definitely ruled out any foreign bond float this year because of wide spreads, he said and noted that the other option for the year is to float peso-denominated bonds through the small-denominated treasury market.

The spreads of US$1.3 billion in global bonds the government had issued in March has widened from 646 to 673 basis points over Libor.

The government plans to start a road show to sell the PHP5 billion worth of Progress Bonds it would issue to retail investors. The bonds could be converted into shares into government assets to be sold later. – with BridgeNews

DAILO

Aug 5, 2000, 11:50 AM

Jardine Matheson–Chase Manhattan $550 million exchangeable

UBS Warburg launched a $550 million Jardine Matheson-Chase Manhattan exchangeable senior bond today. According to a source close to the sale, the book for the deal is several times covered.

The exchangeable represents 8,708,400 shares of Chase Manhattan. It has a seven-year maturity, was issued at par and redeems at par. It will pay a 4.75 percent semi-annual coupon. The exchange price is $63.16, representing a 22.64 percent premium to the stock close on August 3.

DAILO

Aug 5, 2000, 11:59 AM

Philippines to cut borrowing in 2001

The Republic of the Philippines announced on August 4 that it would borrow less from the capital markets next year. The Development Budget Coordinating Committee said the government intends to borrow P177 billion, a fall of 25 percent from fiscal 2000.

Of this total, P112.3 billion will be accessed from the domestic capital markets, with the remainder coming from overseas. The deficit was announced to be Ps85 billion, up from the P62.5 billion for 2000. The large deficit has had a destabilising effect on Philippine sovereign paper recently — 9.75 percent March 2010 is trading at 526 over 10-year Treasuries and 10.625 percent March 2025 is trading at 695.

DAILO

Aug 7, 2000, 09:49 AM

US DOLLAR RATES

Ph Peso 44.675

Yen 108.78

HK Dollar 7.7988

Indonesia Rupiah 8,685

Thailand Baht 40.800

SG Dollar 1.7230

1 TW Dollar 31.078

Korea Won 1,115.5

1 Malaysian Ringgit 3.7998

Euro 1.1008

UK Pound 0.6647

As of 1:51 AM GMT

eligoy

Aug 7, 2000, 11:56 AM

greed IS good as long as you don't harm others. when it comes to currencies, i prefer to deal in US dollars. i've actually been earning an extra $40-$60 a month for the past 2 years. check out my web page in my profile to see how you can too. :)

DAILO

Aug 13, 2000, 02:43 PM

Asiana’s expected asset-backed deal

Asiana Airlines is planning to sell up to $100 million five-year asset-backed securities by the end of August. Korea’s second largest airline will use the proceeds to repay existing debt. The bonds will be secured by receivables on airline fares bought in the US through credit cards.

The Chase Manhattan Bank is arranging the sale. The company held meetings with investors in Hong Kong and Singapore late last month.

DAILO

Aug 13, 2000, 02:44 PM

Bendigo Bank prepares for bond issue

Bendigo Bank will begin a roadshow in Asia in the week commencing August 14. It has mandated Deutsche Bank and WestLB to lead a Eurobond issue. Deutsche Bank led the regional bank’s inaugural public debt issue – a floating-rate Eurobond – in May 1998. Since then Asian investor demand for Bendigo Bank’s Eurobond has been identified. Bendigo Bank has also issued mortgage-backed securities in the Australian domestic debt market, as well as a number of private placements. UBS Warburg and Westpac Institutional Bank are working on another domestic private placement for Bendigo Bank but that is still some months away. S&P rates Bendigo Bank BBB- and Fitch rates the bank at BBB.

DAILO

Aug 14, 2000, 08:57 AM

US DOLLAR RATES

Ph Peso 44.870

Yen 108.76

HK Dollar 7.7990

Indonesia Rupiah 8,230

Thailand Baht 40.525

SG Dollar 1.7108

1 TW Dollar 31.082

Korea Won 1,113.9

1 Malaysian Ringgit 3.7998

Euro 1.108

UK Pound 0.6663

As of 23:27 PM GMT

DAILO

Aug 14, 2000, 08:58 AM

Philippine peso slips early ahead of central bank meeting

Manila, Aug. 11 -- The Philippine peso dipped against the U.S. dollar in early quiet trade Friday as banks covered short dollar positions ahead of the weekend and uncertainties over whether the central bank will pursue plans to further slash its key overnight borrowing rate due to be decided in a meeting of the policy-making Monetary Board later Friday, traders said.

At 0228 GMT, the dollar/peso was bid at 44.895 against Thursday's local close of 44.870.

The pair opened flat at 44.870 but soon mustered strength to rise to an early peak of 44.935.

"I think we're seeing a wait-and-see attitude prior to the Monetary Board meeting," said a trader with a U.S. bank.

Central bank Governor Rafael Buenaventura said Tuesday there may be room to lower further the central bank's overnight borrowing rate by revising the tiered scheme to discourage banks from placing their funds with the monetary authority and instead either loan them out or invest them in government securities.

The central bank has adopted, since June 26, a three-tiered scheme for its overnight borrowing facility, where it effectively cut its overnight borrowing rate to a low of 7% from a uniform rate of 10% depending on the volume of funds placed.

Another trader said banks are just playing it safe ahead of an uncertain weekend particularly after reports Thursday that a homemade bomb exploded in Davao City in southern Mindanao where President Joseph Estrada was on official visit.

Estrada on Tuesday left for the conflict-torn Mindanao for a month-long visit to personally assess the situation there. But Estrada said he is likely to return to the capital Manila on weekends.

"There are no inflows, the market is really dry so the peso is weak compared to the relatively steady regional currencies," said a third dealer at a local bank.

Volume traded at the Philippine Dealing System reached a paltry U.S. $44 million more than an hour after trading commenced.

Traders said commercial clients may be on the defensive and try to buy dollars if they see the pair cruise higher.

The pair is seen trading within a narrow 44.850-44.950 range for the rest of Friday's session. -- BridgeNews

DAILO

Aug 18, 2000, 11:32 AM

Philippine peso gains early on firmer baht, weak dollar demand
Manila, Aug. 17 -- Buoyed by a stronger Thai baht, the Philippine peso recovered some lost ground against the U.S. dollar in slow early trade Thursday amid weak corporate dollar demand for the greenback, dealers said. But lack of incentive to give up dollars for pesos is seen limiting the peso's advances at 44.850. At 0208 GMT, the US dollar/peso was bid at 44.865 against Wednesday's 44.925 close in local trade.

The pair opened lower at 44.880 and slipped further to an early low of 44.870 before edging higher to hit an early peak of 44.900.

"Other regional currencies also recovered against the dollar, particularly the baht. And it has been confirmed that there was no corporate demand (for dollars) near the 45 level," a dealer at a local bank said.

At 0208 GMT, the dollar/baht was quoted at 40.62 against 40.76 in late Asian deals Wednesday.

Total volume at the Philippine Dealing System reached a measly US $23 million an hour into trading.

A dealer at a US bank said the peso's advances may be capped at 44.850 as corporate clients are seen resuming dollar purchases at below 44.900.

"I think banks will also continue holding long dollar positions because of lack of good news (in the domestic front)," a third dealer said.

Dealers said dollar supply also continued to be weak with a reported net outflow in portfolio investments which could further prevent the peso from making a significant headway against the dollar.

The central bank said Wednesday the country's portfolio investments registered a net outflow of US $375.3 million in Jan.-July 21, a reversal from the net inflow of $580.6 million in the same period last year.

Dealers said the dollar/peso is seen trading between 44.850-44.950 for the rest of Thursday's session. -- BridgeNews

DAILO

Aug 18, 2000, 11:33 AM

USD 1 = PhP 44.965
as of 3:34:00 GMT
(11:34:00 PH time)
Change 0.090
% Change 0.2006%
Previous 44.875
Open 44.895
High 45.050
Low 44.945

Bid 44.965
Bid Time 3:34:00
Ask 45.015
Ask Time 3:34:00
Bid 44.965

DAILO

Aug 18, 2000, 11:34 AM

Currencies As of 3:34 AM GMT 1 USD = 44.965 PHP

Country Code Currency USD Rate PHP Equiv.
Australia AUD Dollar 1.6823 26.7283
Canada CAD Dollar 1.4743 30.4992
Euro EUR Euro 0.9159 41.079
Hong Kong HKD Dollar 7.7990 5.7655
Indonesia IDR Rupiah 8,318 0.0054
Japan JPY Yen 109.03 0.4124
Malaysia MYR Ringgit 3.7997 11.8338
New Zealand NZD New Zealand 2.2082 20.3627
Philippines PHP Peso 44.965 1.0000
Singapore SGD Dollar 1.7197 26.147
South Korea KRW Won 1,114.1 0.0404
Switzerland CHF Franc 1.7070 26.3415
Taiwan TWD New Taiwan Dollar 31.081 1.4467
Thailand THB Baht 41.030 1.0959
United Kingdom GBP Pound 0.669 67.184
United States USD Dollar 1.0000 44.965

DAILO

Sep 10, 2000, 11:19 PM

Hello PExRs... i'm back!

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DAILO

Sep 11, 2000, 10:57 AM

Philippines not to sell agriculture bonds this year

The announcement earlier in the week that the Department of Agriculture (DA) was to sell $300 million of eurocurrency-denominated bonds to pay for 14 irrigation projects through Deutsche Bank, this was flatly contradicted by the Department of Finance (DoF).

In a statement, finance under-secretary Joel Banares said, “International bond financing of the Philippines government has been completed for this year…. [We] are not planning to issue Eurobonds to finance its [DoF] irrigation projects.”

The DA said the proposal had been submitted to DoF. However, Banares said that the department hadn’t received a proposal and that the DA’s budget was met by the government.

Referring to the cancelled euro transaction of April he said, “Even the republic is unable to borrow from the euro market at this time.”

DAILO

Sep 11, 2000, 11:33 AM

Pressure mounts to raise rates to aid Philippine peso

Manila -- Despite the Philippine central bank's intense intervention at the currency market Wednesday, pressure is still building up for the monetary authority to raise its key overnight rates to sharply ease tension on the local currency which has fallen to historic lows in recent sessions.

But economists said even if the central bank yields to such clamor, the peso is far from a sustained recovery and will remain prone to wild swings unless the government triumphs from a lingering confidence crisis.

The peso clawed back some lost ground against the U.S. dollar Wednesday when it closed at 45.500 after sinking to a record closing low of 45.595 Tuesday following the central bank's move to sell dollars at the spot currency market to boost the fast-drying liquidity situation.

The peso lost about 13% of its value against the greenback since the start of the year.

Central bank Governor Rafael Buenaventura said the policy-setting Monetary Board opted to unload dollars instead of hiking overnight rates for the meantime since the latter could be disastrous to the recovery efforts of the still fragile economy.

But considering the central bank's restricted dollar reserves, it may be difficult for the monetary authority to continue intervening heavily and would likely rely on dollar remittances from overseas Filipino workers towards the end of the year to lift the peso, market watchers say.

Stronger Strategy

David Fernandez, head of economic research for emerging Asia at JP Morgan, says raising its overnight rates may be a stronger strategy which the central bank can use to fend off the dollar-buying binge.

"It will not be enough but it's one of the limited tool in the arsenal the central bank has, that can send the right message. But at the end of the day, improving local sentiment is the only way to boost the peso," he said.

The central bank also has limited financial resources to sustain any peso-buying operations and may just unnecessarily exhaust its foreign reserves, points out Song Seng Wun, regional economist at GK Goh.

The Philippines' gross international reserves is currently estimated at about U.S. $15.2 billion-$15.3 billion, way below the foreign reserves level of its neighbors.

The central bank last raised its overnight rates by 125 basis points in May to catch up with the series of increases in U.S. interest rates that has consequently caused funds to flock to the greenback.

But the rate increases barely buttressed the local currency that was also under pressure from rising political temperatures at home led by a stubborn Muslim insurgency situation in southern Mindanao and bombing incidents in the capital Manila then.

Since June 26, the central bank adopted a three-tiered scheme for its overnight borrowings where it kept the published 10% rate for the first five billion pesos (PhP) placed overnight, 8.5% for the next PhP5 billion and 7% for funds in excess of PhP10 billion. The overnight lending rate has been maintained at 12.25% for four months now.

Under Fire

"The peso should not be at these levels but it's a combination of a lot of things (such as) the budget deficit, Mindanao and cronyism issues (which are all) driving away investors," a local bank treasurer said.

President Joseph Estrada came under fire anew after the Court of Appeals last week dismissed the government's PhP25.27-billion (U.S. $553.3 million) tax evasion case against Filipino-Chinese tycoon Lucio Tan, a close associate of Estrada, due to a procedural lapse.

Apart from further draining confidence in Estrada's leadership, the news came at time while the government is struggling to contain a budget deficit that is well on track to exceed this year's ceiling of PhP62.5 billion under the government's deal with the International Monetary Fund. At the end of July, the government's budget gap stood at PhP59.7 billion as revenues from privatization of state assets remained slow.

"At this point, it's easy to say that the pressure (on the peso) has been overdone. However as long as domestic sentiment is weak, the peso will remain battered because they're (funds) the only ones who have the power to stop it," said JP Morgan's Fernandez.

But the central bank has also began a clampdown against currency speculators. On Tuesday, central bank deputy Governor Alberto Reyes s aid it will slap monetary fine on more than 10 foreign exchange subsidiaries of banks that were found to have violated rules on currency transactions.

Change in Mindset

Song says there is a strong need to "change the mindset and expectations" of the public and investors to catapult the peso, perhaps towards the 42.500-43.000 level which Buenaventura forecasts towards year end.

There has to be a shift of focus towards the country's relatively sound economic fundamentals from politics although the government has to radically address sagging perception, he said.

The Philippine economy grew 3.9% year-on-year in the first half of the year and is expected to post a modest growth of 4% this year from 3.2% in 1999.

While inflation is slightly picking up due to higher petroleum prices, the headline numbers remain within the government's target and is barely a threat to interest rate direction.

For the first eight months to August inflation has averaged 3.7%, well below the government's 5-6% range for the year. Nonetheless, Fernandez says JP Morgan expects the dollar/peso year-end rate at 46.500 even on the back of a 75-basis-point hike in the central bank's overnight rates with confidence-building likely to be a tough struggle for the government.

"After the (Indonesian) rupiah, the peso is the second most difficult currency to forecast," said GK Goh's Song.

The peso touched its all time intra-day low of 46.500 against the greenback on Jan. 7, 1998, at the height of the Asian financial crisis.

BridgeNews

DAILO

Sep 11, 2000, 11:34 AM

Philippine peso tumbles early in cautious trade

Manila, Sept. 8 -- The Philippine peso slipped against the U.S. dollar in extremely thin trade early Friday as dollar supply appeared to have evaporated without the central bank's active presence in the market, dealers said.

Players also opted to stay in the sidelines amid concerns over the government's widening budget gap and a possible hike in the central bank's key overnight rates, they said.

At 0232 GMT, the U.S. dollar/peso was quoted at 45.620 in Asian deals against Thursday's 45.530 close in local trade.

The pair opened at 45.600 and was stuck in that level for about 30 minutes since trading began at 0100 GMT with only U.S. $0.5 million turnover at the Philippine Dealing System.

At 0252 GMT, the pair traded between 45.600-45.650 as total volume reached a slim $11.5 million.

"Everybody's on a wait-and-see and looking for a possible central bank intervention," a dealer at a European bank said.

The central bank said it infused dollar liquidity into the spot market on Wednesday and Thursday to arrest the peso's slide against the dollar.

Central bank Governor Rafael Buenaventura also said earlier the monetary authority will decide in a meeting Friday whether it will raise its overnight rates or not to help ease the pressure on the local currency.

A second dealer said news about the government's budget deficit already exceeding the full-year ceiling of 62.5 billion pesos (U.S. $1.4 billion) in the first eight months ended August also weighed down on market sentiment.

Local newspapers said earlier Friday the government's budget deficit widened to PhP70 billion in Jan.-Aug. from the actual PhP59.7-billion gap in the first seven months ended July.

A third dealer said the dollar/peso is looking at a next resistance of 45.840 but the central bank may try to cap the pair's rise at 45.650 through the rest of Friday's session.

The release of the remaining six European hostages held by the Muslim extremist group Abu Sayyaf in the southern Mindanao region later Friday may also help lift market sentiment, dealers said.

The dollar/peso is seen firmly supported at the 45.500 level, they said. -- BridgeNews

DAILO

Sep 11, 2000, 11:35 AM

USD 1 = PhP 45.525

as of 3:34:30 GMT
(11:34:30 PH time)

Change -0.205
% Change -0.4483%
Previous 45.730
Open 45.475
High 45.550
Low 45.525

Bid 45.525
Bid Time 3:34:30
Ask 45.575
Ask Time 3:34:30

DAILO

Sep 11, 2000, 11:36 AM

World Currencies As of 3:39 AM GMT 1 USD = 45.525 PHP

Country Code Currency USD Rate PHP Equiv.
Australia AUD Dollar 1.7947 25.3664
Canada CAD Dollar 1.4762 30.8393
Euro EUR Euro 0.8676 39.401
Hong Kong HKD Dollar 7.7987 5.8375
Indonesia IDR Rupiah 8,393 0.0054
Japan JPY Yen 106.14 0.4289
Malaysia MYR Ringgit 3.7998 11.9809
New Zealand NZD New Zealand 2.3740 19.1765
Philippines PHP Peso 45.525 1.0000
Singapore SGD Dollar 1.7356 26.2301
South Korea KRW Won 1,108.5 0.0411
Switzerland CHF Franc 1.7792 25.5873
Taiwan TWD New Taiwan Dollar 31.092 1.4642
Thailand THB Baht 41.410 1.0994
United Kingdom GBP Pound 0.7055 64.516
United States USD Dollar 1.0000 45.525

prizecision

Sep 11, 2000, 01:13 PM

get on a plane to mindanao buy lots of dollars there which is around 30-35 pesos (siempre pwede pang baratin according sa dami ng ipapalit nyo) get back to manila and sell them tubo ka ng 10 pesos :D :D :D

DAILO

Sep 11, 2000, 02:22 PM

prizecision

Welcome to GREED IS GOOD!

the underground blackmarket economy will always have better rates.

GREED IS GOOD! :D :D :D

DAILO

Sep 15, 2000, 12:25 AM

Philippine peso recovers at close amid intervention rumors

Manila, Sept. 14 -- The Philippine peso recovered some lost ground against the U.S. dollar in afternoon session Thursday amid rumors of intervention by the central bank which sparked a dollar profit-taking bout by banks, traders said.

The dollar/peso closed 0800 GMT at 45.605, retreating from a day-peak of 45.950, and against Wednesday's 45.690 close.

The pair opened at 45.820 and soared to a new 32-month intraday high of 45.950 in morning deals. But the dollar demand fizzled out in the afternoon session when the pair recoiled to a day-low of 45.600.

Traders said the central bank provided liquidity in the market which prompted banks to cut some long dollar positions.

"The central bank gave the peso a slight push so banks were forced to reduce or cut positions," said a local bank dealer.

But central bank Governor Rafael Buenaventura said earlier Thursday it was not in the market, seeing no need to sell dollars with the dollar/peso being swayed by regional sentiment.

"I think the market was a little overbought so when the dollar/peso hit the 45.900 levels, some took it as opportunity to take profits," said a foreign trader.

Turnover at the Philippine Dealing System rose to U.S. $128.7 million from $97.5 million on Wednesday.

Traders said the market may have some more dollars to spare on Friday with the dollar/peso seen likely to test the next support of 45.500 although domestic political woes and possible gyrations of regional units may temper any further appreciation. The pair's upside is seen at 45.800. -- BridgeNews

DAILO

Sep 15, 2000, 12:26 AM

USD 1 = PhP 45.550

as of 4:00:42 GMT
(12:00:42 PH time)

Change -0.090
% Change -0.1972%
Previous 45.640
Open 45.590
High 45.680
Low 45.570

Bid 45.550
Bid Time 4:00:42
Ask 45.600
Ask Time 4:00:42

DAILO

Sep 15, 2000, 11:30 AM

Forex: Peso slightly lower on caution ahead of weekend amid talk of rate hike

MANILA (AFX-ASIA) - The peso was slightly lower in early trade on caution ahead of the weekend and amid speculation the central bank will announce today a hike in overnight rates, dealers said.

They said news of the 69.8 bln peso budget deficit for the first eight months, which exceeds the annual ceiling of 62.5 bln, may be also be contributing to the peso's weakness.

At 10:04 am, the peso stood at a weighted average of 45.652 to the dollar from the previous close of 45.605.

It opened at its low for the day of 45.670, rising to a high of 45.630.

Volume was 6.0 mln usd.

"It's because of the weekend. People want to be square or long. Nobody wants to be short (on dollars) over the weekend. It's wait-and-see as the central bank may intervene or raise rates again," a trader with a foreign bank said.

A second trader said peso-dollar is guzrently trading in a range due to some "weekend squaring." He expects the central bank to raise overnight rates by another 50 basis points and to intervene by selling dollars once the peso depreciates past the 45.700 level.

The central bank's policy-making Monetary Board is currently meeting to determine overnight rates for Monday.

"Yesterday, the central bank pushed (the dollar) down to these levels. Today, there's not much trade as some banks are long. They are waiting for demand to come in. The budget deficit is bad news and the peso should weaken more on that," a third trader said.

A fourth trader expects peso-dollar to be confined within the 45.500-45. 750 range today.

DAILO

Sep 21, 2000, 07:08 PM

Philippine peso tumbles past 46 mark early on weak baht

Manila, Sept. 21 -- The Philippine peso plunged early against the U.S. dollar Thursday, breaching the 46 mark a few minutes after trading opened, amid a continued weakening in the Thai baht, dealers said. The central bank was seen trying to break the peso's fall but may have abandoned its support of the local unit after selling less than U.S. $10 million, they said. At 0139 GMT, the U.S. dollar/peso was bid at 46.015 in Asian deals against Wednesday's 45.910 close in local trade.

The pair opened strongly at 45.950 and immediately rose to an early peak of 46.040 half an hour into trading at the Philippine Dealing System.

"It's basically because of the general weakness in regional currencies, especially the Thai baht and also the Singapore dollar. So the trend is really for the dollar/peso to go up," said a dealer at a major local bank.

At 0215 GMT, the U.S. dollar/baht was quoted at 42.61 in Asian deals against 42.57 late Wednesday.

Dealers said the central bank was seen trying to temper the peso's drop by selling dollars at 45.950 but the monetary authority appeared to have halted its offers and allowed the peso to fall in line with other regional units.

"The central bank was intervening at 45.950 and then it let go after selling less than U.S. $10 million," the first dealer said.

Central bank Governor Rafael Buenaventura refused to confirm rumors that the monetary authority sold dollars at the spot market earlier Thursday but he told BridgeNews that the central bank is keeping its options open and continues to monitor the currency market.

Total volume so far reached U.S. $34.5 million more than an hour into trading.

A dealer from a U.S. bank said the dollar's rise against the peso may be capped at 46.050 intra-day since many banks which are long on dollars will likely be tempted to take profits at this level.

"We're looking at 46.050 (resistance) for now but if negative regional sentiment persists and we break 46.050, then we're already looking at 46.200," the dealer said.

Dealers said it would be unlikely for the peso to reach for its historic low of 46.500 intra-day, last touched on Jan. 7, 1998, but it would continue to be a target in the near-term.

The pair is seen finding an immediate support at 45.900-45.950, they said. -- BridgeNews

DAILO

Sep 25, 2000, 07:51 PM

MANILA (AFX-ASIA) - The peso closed at a new low after a brief rebound earlier, with corporate demand for dollars picking up again and with sentiment also affected by renewed pressure on the baht, dealers said.

They said the outlook for the peso remains negative due to the unstable currencies in the region and seasonal demand for U.S. dollars.

The peso closed at 46.165 to the dollar, its low for the day and a new record closing low, after rising to 46.03 earlier. It ended at 46.155 on Friday.

Volume fell to 60.60 mln usd from 78.0 mln.

"The peso opened stronger this morning because of firmer regional currencies and the joint intervention carried out by central banks worldwide last Friday," a dealer at a local commercial bank said.

However, the peso bowed to renewed pressure later in the day as most banks took the earlier rebound as a chance to purchase more dollars.

"Corporates saw (the dollar's fall) as an opportunity to buy at those levels," she said, adding the demand may be legitimate as manufacturers start building up their production ahead of the Christmas season.

The peso should weaken further to 46.20 to the dollar in the near term, she added.

"We really expect the U.S. dollar to breach its all-time high of 46.50. Once this level is exceeded, it's anybody's ballgame."

A second dealer said the peso should move sideways in the coming days as banks prefer to wait until the dollar and the regional currencies stabilise.

"Initially, the peso may reach 46.05 to the dollar within the week. But I don't see any major event that could trigger (any drastic rise or fall of the peso)."

The Philippine central bank did not intervene in the market, dealers said.

green grin

Sep 26, 2000, 01:05 AM

hey, dailo! do you think we'll see a Php47 to 1 dollar before the end of the year? how will dollar remittances from ocws affect the slide? thanks in advance for your reply, man. no doubt this is one of the most popular threads these days. :D

DAILO

Sep 27, 2000, 05:27 PM

Originally posted by green grin
hey, dailo! do you think we'll see a Php47 to 1 dollar before the end of the year? how will dollar remittances from ocws affect the slide? thanks in advance for your reply, man. no doubt this is one of the most popular threads these days. :D

I hope not! The peso's weakness against the dollar in recent days is largely due to corporate quarter-end and month-end demand for the U.S. unit. I don't see any speculation. The demand by corporates will taper off next week. Helping the peso, will be inflows from overseas Filipino workers which will come by mid-October. The recent decline in the value of the peso is also due to concerns over the rising crude oil prices, weakness in other regional currencies and speculation of a possible hike in the U.S. federal funds rates before the end of the year.

The peso stood at a weighted average of 46.190 at the close of morning trade against yesterday's close of 46.245.

The peso rose early today due to the rebound in regional currencies, particularly the baht.

DAILO

Oct 2, 2000, 03:59 PM

Manila, Oct. 2 -- The Philippine peso trekked lower against the U.S. dollar in early quiet trade Monday as banks tried to reinstate long dollar positions despite mostly firmer regional counterparts amid a dearth of positive clues to buy the peso, traders said. At 0221 GGMT, the dollar/peso was bid at 46.205 in Asian activity after closing at 46.150 in local trading Friday.

"Last Friday, most banks opted to unload dollars and square off positions for the weekend. Now, I think they're trying to rebuild long dollars since there's no reason to buy peso at this time," said a local dealer.

The pair opened at its early low of 46.180 and edged up to 46.240 shortly amid a measly turnover of U.S. $18 million at the Philippine Dealing System at 0221 GMT.

Jonathan Ravelas, market strategist at Equitable PCIBank, said the government's fiscal woes are also taking their toll on the peso.

"The local currency continued to weaken against the U.S. dollar in light of the continued concerns over the national government's ballooning budget deficit after the IMF stand of not allowing the national government to revise its budget deficit target," he said.

Finance Secretary Jose Pardo said last week the International Monetary Fund has not agreed to lifting the year-end deficit ceiling, raising concerns that the government may not be able to access about U.S. $300 million more in funds from an IMF standby facility that expires by end December.

The government's budget deficit stood at 69.787 billion pesos (U.S. $1.5 billion) at end August, surpassing the year-end goal of 62.5 billion pesos.

Traders said the first deal was done at about 40 minutes after the market opened as two-way interest seemed bland.

"We may just see the pair range-bound today, probably 46.100-46.300, although I'm not discounting the possibility of a central bank action," said a foreign bank dealer.

The central bank intervenes in the spot market every now and then to check on the pair's volatility but usually keeps its hands off if the gyrations are driven by movements among regional currencies.

Another trader said he sees the dollar/peso trading within the 46.150-46.300 intra-day with oil companies likely to take the pair on dips to service requirements. -- BridgeNews

DAILO

Oct 2, 2000, 04:04 PM

MANILA (AFX-ASIA) - The average rates for the 91-day and 364-day Treasury bills were higher at today's auction, with the government making a partial award of its 4-bln peso offer, the Bureau of Treasury said.

Awards totalled 1.785 bln pesos, with 1.0 bln going to 91-day bills and 785 mln pesos to 364-day bills. The bids for the 182-day bills were fully rejected.

The average rate for 91-day T-bills rose to a new 15-month high of 9.285 pct from 9.274 pct last week, with done rates at 9.240-9.315 pct. The 91-day T-bill average rate was the highest since June 14 last year, with the rate reaching 9.500 pct.

The 182-day bills' average rate last week was 11.004 pct.

For 364-day bills, the average rate rose to 12.498 pct from 12.135 pct a week earlier, with done rates at 12.300-12.625 pct.

The government offered 1.0 bln pesos in 91-day bills and 1.5 bln each in 182-day and 364-day bills.

Tenders amounted to 6.620 bln pesos, up from last week's 4.150 bln. Of the total, 4.540 bln pesos were for 91-day T-bills, 675 mln for 182-days, and 1.405 bln for 364-day bills.

DAILO

Oct 2, 2000, 04:26 PM

Originally posted by aticus
The Peso has been dropping at alarming rates versus the US Dollar. Is it time for the Central Bank to directly intervene and prop up the Peso? Should we start to impose some more stringent financial measures defend the integrity of our national currency?

If pushed to the limit, the central bank may have no other recourse but to choose between "two evils" -- allow a weak peso or hike interest rate further as means to prop up the Philippine Peso.

Either decision will affect Philippine business. Propping it up might help importers, but may hurt exporters. It would certainly deplete our already meager Dollar reserves.

The more wise thing to do is intervene by means of Economics. Raise interest rates rather than pump dollars. Raising interest rates however risks companies closing shop and more Filipinos losing their jobs. At the height of the Asian financial crisis, the peso dropped to as low as PhP46 to a dollar while interest rates rose to as high as 32%, forcing companies to restructure their loans, rethink expansion and retrench people. We've already broken that support level... in fact I was able to trade dollars on the blackmarket at a rate of P46.38 last friday.

Letting it slide, especially in the face of our current crisis in Mindanao, may have almost catastrophic consequences on business in the Philippines. Oil prices would keep increasing. The prices of basic goods will soon follow. Not doing anything is itself a decision NOT to prop it up.

There isn't a right or wrong answer on this problem, but it must be the government which decides... we will not be able to steer our way through the situation without absorbing some cost. That is the irony of this balance - the two evils.

There is a school of thought that preaches additional interest rate increases would further dampen economic growth. For one, borrowers, especially companies already saddled with debts, would find it more difficult to recover. A further rise in local interest rates is not a guarantee the peso will start to stabilize, considering that pressures come from both the economic and the political fronts.

If YOU were Central Bank Governor, what would you do?

There is a psychological effect that something is wrong in the economy whenever the peso falls... an impact on business confidence. If I was Central Bank Governor I would sit back and allow economics to take place... its the wisest thing to do. It is better for the long term because it will force the industries to restructure itself. Survival of the fittest... which would weed out the weak who placed us in this situation. Confidence will be restored when the weak fall.

Thats my two cents... GREED IS GOOD! :D :D :D

DAILO

Oct 25, 2000, 08:10 PM

Hey PExeR's im back... after a very stressing situation... moving placements, stocks, and currencies around to ensure the highest and safest yield ... we havent seen anything yet... the worse is yet to come...

GREED IS GOOD! :D :D :D

Ira

Oct 26, 2000, 11:52 AM

The peso is play money na lang.

DAILO

Jan 23, 2001, 06:53 AM

Hello PExERS! Today was a good day for our market... Stocks and rates are hitting their ceilings making all time highs for the year... Get in on it...

GREED IS GOOD!!! :D :D :D

DAILO

Jan 24, 2001, 02:04 AM

Central bank may cut key rates by 50 bps Thursday

Manila -- The Philippine central bank will resume its rate-cutting strategy this week as the foreign exchange market returned to stability following the bloodless resolution of the country's turmoil and the installation of new President Gloria Macapagal Arroyo, central bank Governor Rafael Buenaventura said Monday.

The central bank chief said the policy-making Monetary Board may consider another 50 basis point reduction at the weekly meeting Thursday. He said he sees the overnight borrowing rate eventually dropping to 9.5-10.5 percent from the current 12.5 percent.

"It is possible to lower overnight rates by another 50 basis points on Thursday depending on the stability of the peso and also on how the Fed (US Federal Reserve) moves," Buenaventura said.

With the political risk premium gone, the peso could now trade within its normal spread of PhP3.00 to PhP4.00 over the Thai baht, Buenaventura noted.

He added that the peso's strong rebound is very much in sync with the PhP47.00-PhP49.00 to US$1 average for the year set by economic managers. - with BridgeNews

DAILO

Jan 24, 2001, 02:07 AM

Manila, Jan. 22 -- The Philippine peso finished weaker against the U.S. dollar Monday as the initial joy over the peaceful change in the government subsided and political concerns resurfaced as ousted Joseph Estrada makes last ditch claims to the presidency, dealers said. Another possible cut in the central bank's key overnight rates also prevented banks from giving up their greenbacks, they added.

At 0800 GMT, the U.S. dollar/peso ended near its day-high at 49.300 against Friday's 47.500 close. The pair opened at its day-low of 46.000 before steadily rising to touch an intra-day peak of 49.400.

The peso shot up 15 percent to the dollar when it closed Friday as defections from the military and the Cabinet hit the Estrada government, leading to his ouster and the swearing-in of new leader President Gloria Macapagal-Arroyo on Saturday.

"There was just euphoria so many bought (dollars) because they think it was already a good level to buy. Later on, more were looking (for dollars) because of news about Estrada's letter," a dealer at a major local bank said.

In a letter to Senate president Aquilino Pimentel, Estrada was quoted as saying that he was just "unable" to perform his duties and the vice president, referring to Arroyo, shall be acting president. Despite Estrada's position, the Supreme Court has affirmed Arroyo's appointment as president.

"A lot of people were actually selling already when the news about Estrada's letter broke out so banks took the opportunity to average down (their losses) and protect their position because many were trapped at the (dollar/peso) highs," a dealer at a U.S. bank said.

A third dealer said the central bank's announcement of possible cuts in the key overnight rates with an expected stabilization in the exchange rate following the resolution of the political crisis also prevented banks from shaving their dollar positions.

Central bank Governor Rafael Buenaventura said earlier Monday there is room for another 50-basis-point cut in the overnight rates which had already been reduced by 250 basis points since December 4 last year as the foreign exchange stabilizes.

Total volume at the Philippine Dealing System reached a sizable U.S. $188.35 million against Friday's $101.55 million.

Dealers said the pair may find an immediate resistance at the 49.500 mark Tuesday if the dollar-buying momentum continues. A break of the 49.500 barrier may bring the currency duo back to the 50.000 levels. The pair is seen finding immediate support at 49.000, they said. -- BridgeNews

GREED IS GOOD!!! :D :D :D